Tongling Nonferrous Metals Group (000630) H2 2024 earnings summary

Executive summary

• Achieved revenue of ¥145.53 billion in 2024, up 5.88% year-over-year; net profit attributable to shareholders rose 4.05% to ¥2.81 billion.

• Copper production and sales remained stable; gold and by-product revenues surged due to higher prices.

• Maintained strong market position in cathode copper and copper foil, with significant R&D investment and technological breakthroughs.

• Navigated industry challenges including volatile copper prices, lower processing fees, and power shortages in Ecuador.

Financial highlights

• Revenue: ¥145.53 billion, up 5.88% year-over-year; net profit: ¥2.81 billion, up 4.05%.

• Gross margin: 7.09%; basic EPS: ¥0.22; weighted average ROE: 8.54%.

• Operating cash flow: ¥1.53 billion, down 74.09% due to increased inventory.

• Total assets: ¥80.94 billion, up 3.45%; net assets attributable to shareholders: ¥33.89 billion, up 6.51%.

• R&D investment: ¥4.68 billion, up 12.38%, representing 3.22% of revenue.

Outlook and guidance

• 2025 production targets: 194,900 tons copper concentrate, 1.896 million tons cathode copper, 43,050 tons copper processed materials, 19.13 tons gold.

• Focus on high-quality growth, cost control, and green transformation; continued investment in smart manufacturing and new materials.

• Board plans to enhance governance, risk management, and shareholder returns.