Zhaojin Mining Industry Company (1818) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 rose 50.69% year-over-year to RMB6.97 billion, driven by higher gold prices and increased sales volume.

• Net profit surged 144.58% year-over-year to RMB1.78 billion, with profit attributable to owners up 160.44% to RMB1.44 billion.

• Gold production increased 8.42% to 14,288 kg, with mined gold output up 13.77%.

• Basic and diluted EPS rose 216.67% to RMB0.38.

• No interim dividend was declared for the period.

Financial highlights

• Gross profit increased 54.31% to RMB3.05 billion, with gross margin improving to 43.74%.

• Other income and gains rose 195.36% to RMB1.13 billion, mainly from fair value changes in financial instruments.

• Administrative and other operating expenses increased 47.52% to RMB1.67 billion, mainly due to impairment provisions.

• Finance costs decreased 4.36% to RMB253 million.

• Cash and cash equivalents rose 60.18% to RMB3.25 billion as of 30 June 2025.

Outlook and guidance

• Plans for the second half include increasing production and capacity, intensifying exploration, and optimizing asset structure.

• Focus on project construction, especially at Ruihai Mining and Abujar Gold Mine, and on ESG, compliance, and risk management.

• Emphasis on cost control, efficiency, and ESG compliance for the remainder of 2025.

• Continued focus on innovation, project execution, and risk management to achieve annual targets.