Lingbao Gold Group Company (3330) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 decreased by 26.67% year-over-year to RMB4,281 million, mainly due to lower gold bullion production from regulatory impacts and reduced procurement of compound gold.

• Net profit rose to RMB153 million from RMB120.5 million year-over-year, driven by higher gold prices and all operating mines turning profitable.

• Basic earnings per share was RMB0.13, down from RMB0.16 in H1 2023.

• No interim dividend was declared for H1 2024.

Financial highlights

• Gross profit increased to RMB408 million (margin 9.52%) from RMB355 million (margin 6.09%) year-over-year.

• Operating profit was RMB257 million, down from RMB283 million year-over-year.

• Cash and cash equivalents at period end were RMB332 million, up from RMB257 million at 2023 year-end.

• Gearing ratio increased to 48.7% from 41.7% at end-2023.

• Total equity increased to RMB2,612 million from RMB2,437 million at 2023 year-end.

Outlook and guidance

• Plans to consolidate positive trends, increase production and efficiency, and invest RMB200 million in exploration at Lingjin No. 1 Mine.

• Accelerating digitalization, green mine construction, and ESG initiatives.

• Focus on talent acquisition, internal reforms, and overseas M&A, especially in the South Pacific and Africa.

• Continued emphasis on safety, environmental protection, and cost control.