Yunnan Chihong Zinc & Germanium (600497) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 9.83 billion, down 11.05% year-over-year; net profit attributable to shareholders was RMB 903 million, down 22.28% year-over-year.

• Decline in profit mainly due to lower trade scale and increased costs, despite higher metal prices.

• Key production: lead-zinc concentrate output 149,000 tons (down 8.87% YoY), refined lead-zinc 353,900 tons (up 2.17% YoY), germanium products 34.29 tons (up 6.82% YoY).

• Company completed acquisition of Qinghai Hongxin and began management of Jinding Zinc and Yuntong Zinc, accelerating resource integration.

Financial highlights

• Operating income: RMB 9.83 billion (down 11.05% YoY).

• Net profit attributable to shareholders: RMB 903 million (down 22.28% YoY).

• Basic EPS: RMB 0.1773 (down 22.30% YoY).

• Operating cash flow: RMB 1.60 billion (down 20.25% YoY).

• Total assets: RMB 26.89 billion (down 3.48% from year-end 2023).

• Asset-liability ratio: 42.28% as of June 30, 2024.

Outlook and guidance

• Company expects continued volatility in metal prices and will focus on cost control, resource integration, and technological innovation.

• Plans to further expand lead-zinc and germanium production capacity and enhance green, low-carbon transformation.