Zhaojin Mining Industry Company (1818) Q4 2024 earnings summary

Executive summary

• Revenue rose 37.12% year-over-year to RMB11.55 billion, driven by higher gold prices and increased sales volume.

• Net profit surged 120.81% year-over-year to RMB1.85 billion, with EPS up 150% to RMB0.35.

• Gold output increased 7.15% to 26,449.73 kg, with overseas mines and smelting contributing to growth.

• Board proposed a final cash dividend of RMB0.05 per share, up from RMB0.04.

Financial highlights

• Gross profit rose 34.17% to RMB4.52 billion; gross margin slightly decreased to 39.15%.

• Cost of sales increased 39.09% to RMB7.03 billion, reflecting higher gold sales.

• Other income and gains grew 10.54% to RMB582.5 million, mainly from financial instrument settlements.

• Finance costs fell 10.38% to RMB544.6 million due to lower average financing rates.

• Effective tax rate dropped to 16.94% from 25.57%, with income tax expense up RMB89.4 million.

Outlook and guidance

• Plans to focus on production continuity, mining process optimization, and capacity expansion in 2025.

• Continued investment in exploration, mergers, and acquisitions to drive resource growth.

• Emphasis on cost reduction, efficiency, and ESG principles for sustainable development.