Jiangxi Copper Company (358) Q2 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 reached RMB273.1 billion, up 2.08% year-over-year; net profit attributable to shareholders was RMB3.62 billion, up 7.66% year-over-year.

• Total assets increased 34.62% to RMB226.36 billion, and net assets attributable to shareholders rose 10.12% to RMB74.24 billion as of June 30, 2024.

• Production of copper cathode and gold increased 18.89% and 31.02% respectively, while silver output declined 6.48%.

• The company maintained a stable and improving operational trend and its position as China's largest copper cathode supplier, with significant overseas assets (20.22% of total assets).

Financial highlights

• Revenue: RMB273.1 billion (up 2.08% year-over-year).

• Net profit attributable to shareholders: RMB3.62 billion (up 7.66% year-over-year).

• Basic earnings per share: RMB1.05 (up 7.82% year-over-year).

• Net assets per share: RMB21.51 (up 10.45% year-over-year).

• Net cash flow from operating activities was negative RMB4.8 billion, mainly due to increased inventories.

Outlook and guidance

• Copper prices are expected to fluctuate between RMB73,000 and RMB80,000 per tonne in the second half of 2024, with macroeconomic pressures and anticipated Fed rate cuts influencing the market.

• The company anticipates continued challenges from limited mine supply, high scrap copper imports, and divergent downstream demand, impacting processing fees and production costs.