Lygend Resources (02245) released its unaudited interim results for the six months ended 30 June 2026.

Revenue rose 39.8% year-on-year to RMB 25.36 billion, driven mainly by a 67.3% surge in nickel-product production revenue to RMB 16.17 billion. Trading revenue remained stable at RMB 7.65 billion, while “other” income contributed RMB 1.54 billion.

Gross profit climbed 79.6% to RMB 6.43 billion, lifting the gross margin to 25.4% from 19.7%. The production segment margin improved to 36.6% (1H25: 33.1%), with ferronickel margin expanding to 26.9% (1H25: 15.1%) and nickel-cobalt compounds margin reaching 45.5% (1H25: 39.7%). Trading margin edged up to 5.4% (1H25: 4.3%).

Net profit attributable to shareholders jumped 91.9% to RMB 2.74 billion, pushing net margin to 17.3% (1H25: 12.4%). Group profit after tax totalled RMB 4.38 billion.

Operating cash inflow amounted to RMB 1.93 billion (1H25: RMB 2.77 billion). Cash and cash equivalents stood at RMB 6.84 billion, down 7.3% from end-2025. The current ratio improved to 1.2x (end-2025: 1.1x), while interest-bearing debt increased slightly to RMB 19.42 billion. Gearing eased to 0.8x (end-2025: 0.9x).

Capital expenditure reached RMB 2.13 billion, mainly for the rollout of Phase II RKEF lines on Indonesia’s Obi Island, which achieved full production on 1 August 2026. Outstanding contracted capex commitments total RMB 3.22 billion.

Income-tax expense more than doubled to RMB 1.17 billion, reflecting withholding taxes on project earnings and initial provisions for Pillar Two top-up tax.

No interim dividend was declared.

Management highlighted the completion of core capacity at the Obi project, lean-cost gains across hydrometallurgy and pyrometallurgy, and ongoing ESG initiatives, including hydrometallurgical slag reutilisation and localisation programmes in Indonesia.