In the first quarter of 2013, the company achieved operating income of 300 million yuan, an increase of 42.71% over the previous year; operating profit of 63.7934 million yuan, an increase of 46.77% over the previous year; net profit attributable to owners of the parent company was 46,1978 million yuan, an increase of 45.6% over the previous year; and basic earnings per share of 0.0597 yuan.
The shares and claims of Zhongrun Real Estate were sold. The company received 69.038,600 yuan of shares transferred from Qingdao Zhongrun Real Estate Co., Ltd. in January 2012. As of the reporting period, the company no longer had actual control over Zhongrun Real Estate. The relevant land was handed over in January of this year, received 40 million yuan in debt payments in March, and confirmed investment income of 590.4 million yuan in the current period. The company is speeding up the divestment of its original real estate business, thereby comprehensively transforming mining investment.
Zhongrun Zibo Real Estate. The company and its wholly-owned subsidiary Zhongrun Real Estate hold 12% and 88% of the shares of Shandong Zhongrun Group Zibo Real Estate Co., Ltd. respectively. Prior to the divestiture of Zhongrun Real Estate, at the end of February this year, Zhongrun Real Estate transferred all 88% of Zhongrun Zibo Real Estate's shares to the company. Eventually, the company changed from indirect ownership to direct ownership of 100% of Zibo Real Estate's shares, which also became the company's only remaining real estate asset.
Expenses were well controlled during the period. The company's expenses rate during the period was 11.04%, down 3.43 percentage points from the previous year. Among them, the sales expenses ratio was 0.44%, down 1.72 percentage points from the previous year; the management expenses ratio was 5.47%, down 1.31 percentage points from the previous year; and the financial expenses ratio was 5.12%, down 0.4 percentage points from the previous year.
Long-term financial pressure has declined, and short-term financial pressure has decreased. The balance ratio at the end of the period was 65.41%, and the real balance ratio after excluding prepaid accounts was 37.4%, down 9.03 percentage points from the previous year, and long-term capital pressure declined; the monetary capital at the end of the period was 212 million yuan, an increase of 89.63% over the previous year. “Monetary funds/ (short-term loans plus non-current liabilities due within one year)” was 2.21 times, an increase of 1.9 over the previous year, and short-term capital pressure decreased.
Increase your holdings in the Huatucola gold mine. Zhongrun International Mining purchased 8.8 million common shares of Huatukola Gold Mining Company at a subscription price of £0.15 per share, with a total subscription price of £1.32 million. Up to now, the company has subscribed to 37.8 million common shares of Watucola and spent 13.32 million pounds (about 130 million yuan), making it its largest shareholder. The Watukola Gold Mine is located in the northern part of Viti Island, the largest island in Fiji. It has 3 mining rights and 3 prospecting rights, covering a total area of about 210 square kilometers. Currently, it holds a total of 4.2 million ounces (about 130 tons) of gold and metal resources, making it a large-scale gold mine.
We previously estimated the company's earnings per share for 2013-2014 to be 0.41 yuan and 0.48 yuan respectively, maintaining a “neutral” investment rating. Based on the closing price of 2013/4/7, the corresponding dynamic price-earnings ratio was 18 times and 15 times, respectively.
Risk warning: general market systemic risk; business transformation risk.