Zhihui Mining (02546) reported a sharp rebound for the six months ended 30 June 2026, driven by higher concentrate output and firmer commodity prices.
Revenue and Profitability • Revenue rose 75.9% year-on-year (YoY) to RMB 278.19 million, powered by stronger volumes and better realised prices for zinc, copper, lead and silver concentrates. • Gross profit climbed 183.9% to RMB 146.46 million; gross margin expanded to 52.7% from 32.6% in 1H25 after the group stopped processing low-margin third-party ores. • Net profit attributable to shareholders surged 271.4% to RMB 98.89 million, lifting basic EPS to RMB 0.20 (1H25: RMB 0.07). • No interim dividend was proposed; a final dividend of RMB 0.102 per share for FY25 (RMB 49.76 million) was paid during the period.
Operational Highlights • Ore processed reached 217,170 tonnes, up 75.6% YoY. • Concentrate sales volumes: zinc 8,174 t (+53.8%), lead 3,552 t (+45.3%), copper 210 t (-5.0%); silver in lead and copper streams declined 22.6% and rose 36.9% respectively. • Average realised prices: zinc RMB 18,256/t (+28.5%), copper RMB 82,707/t (+31.4%), lead RMB 13,781/t (+0.7%). • Cost of sales increased 23.7% to RMB 131.73 million, well below revenue growth, reflecting the absence of externally procured ore and lower subcontracting spend.
Financial Position • Cash, bank balances and time deposits totalled RMB 685.50 million at 30 June 2026 (31 Dec 2025: RMB 607.60 million). • Interest-bearing debt rose to RMB 106.94 million (31 Dec 2025: RMB 87.91 million); gearing stood at 6.2% (31 Dec 2025: 5.4%). • Net operating cash inflow was RMB 179.60 million; net capex outflow reached RMB 345.12 million, including RMB 74.75 million for plant upgrades and RMB 72 million for the Dachuan acquisition.
Strategic Developments • Invested RMB 10 million to retrofit its beneficiation plant to recover pyrite concentrate; commercial sales to commence in 2H26. • Established an in-house Technology Centre focusing on AI-enabled mineral exploration; secured four software copyrights and partnered with Zhejiang University and China University of Geosciences. • Acquired 60% of Xizang Dachuan Mining for RMB 90 million, adding copper-molybdenum potential at Baomai Mine; 80% of the RMB 72 million cash consideration paid by period-end.
Outlook Management reiterated its strategy to broaden the non-ferrous product mix, accelerate inorganic growth and scale up AI-driven exploration to improve resource conversion efficiency and cost control.
Governance and Capital Actions • Completion of H-share full circulation on 23 July 2026; all 487.81 million shares now trade in Hong Kong. • No material pledges, financial assistance, or covenant breaches were reported.
Auditor Deloitte reviewed the interim financial statements without qualification.