Investment Rating - The report maintains a **Buy** rating for Zhaojin Mining (1818) with a target price of **HKD 17.39**, representing a **26.2% upside** from the current price [1][3] Core Views - Zhaojin Mining's performance has significantly improved, driven by **higher gold prices** and **increased production volume** [1] - The company's **overseas projects** are progressing steadily, with substantial potential for future production growth [1] - The **gold price** is expected to remain high, supported by **Fed rate cut expectations** and **central bank gold purchases**, providing a stable foundation for the company's performance [1] Financial Performance - In H1 2024, Zhaojin Mining achieved **RMB 4.627 billion** in revenue, a **34.24% YoY increase**, and **RMB 553 million** in net profit attributable to shareholders, a **118.62% YoY surge** [1] - The company's **gold production** reached **13.18 tons**, up **12% YoY**, with self-produced gold at **9 tons** (+6.9% YoY) and smelted gold at **4.18 tons** (+24.8% YoY) [1] - The **cost per gram of gold** decreased by **RMB 4.7**, leading to a **3.72 percentage point increase** in gross margin [1] Gold Price Trends - The **London gold spot price** reached **USD 2,322.7/oz** by the end of June 2024, up **over 13%** from the beginning of the year, breaking the **USD 2,300/oz** threshold [1] - The **Shanghai Gold Exchange Au9999 price** rose to **RMB 549.88/g**, a **14.4% increase** from the start of the year [1] Production Expansion - Zhaojin Mining completed the **full acquisition of Tietuo Mining**, which has a **gold resource reserve of over 40 tons** and is expected to produce **4-5 tons annually** [1] - The company acquired a **70% stake in Ruihai Mining**, which owns the **largest single gold mine in China** (Haijing Gold Mine) with a **total gold resource of 562.37 tons** and **mineable reserves of 212.21 tons** [1] - The **Haijing Gold Mine** is expected to reach **15 tons of annual production** by 2027 [1] Financial Forecasts - The report forecasts **net profit attributable to shareholders** of **RMB 1.25 billion** in 2024, **RMB 1.98 billion** in 2025, and **RMB 2.7 billion** in 2026 [1] - Revenue is projected to grow to **RMB 12.85 billion** in 2024, **RMB 15.85 billion** in 2025, and **RMB 19.41 billion** in 2026, with **YoY growth rates of 53%, 23%, and 23%**, respectively [2] - **EPS** is expected to increase to **RMB 0.37** in 2024, **RMB 0.58** in 2025, and **RMB 0.79** in 2026 [2] Valuation Metrics - The target price of **HKD 17.39** is based on a **30x PE multiple** for 2025 [1] - The current **PE ratio** is **33.8x** for 2024, **21.4x** for 2025, and **15.6x** for 2026 [2] Industry and Market Position - Zhaojin Mining operates in the **non-ferrous metals industry** and is positioned as a leading gold producer with significant **resource reserves** and **production capacity** [3] - The company's **major shareholders** include **Zhaojin Group (37.15%)** and **Zijin Mining (20%)** [3]

Revenue and Profit Growth - Revenue for the period reached approximately RMB 4,627,203,000, a year-on-year increase of 34.24%[13] - Net profit for the period was approximately RMB 726,420,000, a year-on-year increase of 98.82%[14] - Profit attributable to owners of the parent company was approximately RMB 552,793,000, a year-on-year increase of 118.62%[16] - Revenue increased by 34.24% to RMB 4,627,203,000 compared to the same period last year, driven by higher gold sales prices and increased sales volume[21] - Net profit surged by 98.82% to RMB 726,420,000, primarily due to increased sales gross profit and reduced financial costs[22] - Revenue for the six months ended June 30, 2024, increased to RMB 4,627,203 thousand, up from RMB 3,446,912 thousand in the same period in 2023, representing a growth of 34.2%[82] - Gross profit for the six months ended June 30, 2024, was RMB 1,976,643 thousand, compared to RMB 1,344,407 thousand in the same period in 2023, an increase of 47.0%[82] - Net profit attributable to owners of the parent company for the six months ended June 30, 2024, was RMB 552,793 thousand, up from RMB 252,858 thousand in the same period in 2023, a significant increase of 118.6%[82] - Total revenue for the six months ended June 30, 2024, increased by 34.2% to RMB 4,627,203 thousand compared to the same period in 2023[101] Production and Cost Efficiency - Total gold production for the period was approximately 13,178.35 kilograms (423,693.18 ounces), a year-on-year increase of 11.98%[15] - Copper production for the period was approximately 4,082 tons, a year-on-year increase of 54.15%[15] - Total gold production reached 13,178.35 thousand kilograms (approximately 423,693.18 ounces), with mineral gold production at 8,997.03 thousand kilograms (289,261.02 ounces)[20] - Comprehensive gold production cost decreased by 2.18% to RMB 209.99 per gram, attributed to increased gold production and cost control measures[23] - Gross profit rose by 47.03% to RMB 1,976,643,000, with gross margin improving from 39.00% to 42.72%[25] - Depreciation and amortization expenses totaled RMB 592,786 thousand, with gold mining business accounting for 88.1% of the total[98] - Cost of goods sold for the first half of 2024 was RMB 2,650,560 thousand, an increase from RMB 2,102,505 thousand in the same period of 2023[107] Financial Performance and Costs - Basic and diluted earnings per share were RMB 0.12, a year-on-year increase of 200.00%[17] - Comprehensive net assets per share as of June 30, 2024, were RMB 7.21, compared to RMB 6.43 on June 30, 2023[18] - Other income and gains increased by 29.56% to RMB 383,824,000, mainly due to the rise in fair value of financial assets[26] - Financial costs decreased by 15.11% to RMB 264,207,000, driven by a lower weighted average financing interest rate[29] - The company's financial costs for the six months ended June 30, 2024, decreased to RMB 264,207 thousand from RMB 311,238 thousand in the same period in 2023, a reduction of 15.1%[82] - The company's income tax expense for the six months ended June 30, 2024, was RMB 226,659 thousand, compared to RMB 85,615 thousand in the same period in 2023, an increase of 164.7%[82] - The company's share of profits from associates for the six months ended June 30, 2024, was RMB 4,112 thousand, compared to RMB 2,374 thousand in the same period in 2023, an increase of 73.2%[82] - The company's share of losses from joint ventures for the six months ended June 30, 2024, was RMB 478 thousand, compared to no loss in the same period in 2023[82] Asset and Liability Management - Total assets increased by 12.14% to RMB 52,557,541,000 as of June 30, 2024, compared to RMB 46,867,396,000 as of December 31, 2023[34] - Net assets grew by 10.28% to RMB 24,530,094,000 as of June 30, 2024, from RMB 22,244,326,000 as of December 31, 2023[35] - Total liabilities rose by 13.83% to RMB 28,027,447,000 as of June 30, 2024, compared to RMB 24,623,070,000 as of December 31, 2023[36] - Leverage ratio increased to 42.74% as of June 30, 2024, from 40.03% as of December 31, 2023[36] - Outstanding bank loans and other borrowings totaled RMB 12,543,162,000 as of June 30, 2024, up from RMB 9,767,317,000 as of December 31, 2023[32] - Fixed-rate interest-bearing bank loans and other borrowings accounted for 54.85% of total interest-bearing borrowings as of June 30, 2024, down from 57.74% as of December 31, 2023[32] - Non-current assets increased by 14.86% to RMB 38,858,227,000 as of June 30, 2024, compared to RMB 33,830,534,000 as of December 31, 2023[34] - Current assets grew by 5.08% to RMB 13,699,314,000 as of June 30, 2024, from RMB 13,036,862,000 as of December 31, 2023[34] - Total assets increased to RMB 40,273,504 thousand as of June 30, 2024, compared to RMB 34,623,705 thousand at the end of 2023[87] - Net current liabilities rose to RMB 1,415,277 thousand from RMB 793,171 thousand at the end of 2023[87] - Non-current assets grew to RMB 38,858,227 thousand, up from RMB 33,830,534 thousand at the end of 2023[86] - Property, plant, and equipment increased to RMB 17,942,129 thousand from RMB 16,495,003 thousand at the end of 2023[86] - Other intangible assets surged to RMB 16,005,177 thousand, compared to RMB 12,550,869 thousand at the end of 2023[86] - Current assets totaled RMB 13,699,314 thousand, up from RMB 13,036,862 thousand at the end of 2023[86] - Total equity increased to RMB 24,530,094 thousand from RMB 22,244,326 thousand at the end of 2023[87] - Comprehensive reserves grew to RMB 9,999,703 thousand, compared to RMB 8,516,038 thousand at the end of 2023[88] - Net profit for the period was RMB 412,379 thousand[88] - Total comprehensive income for the period was RMB 632,768 thousand[88] - Total equity as of June 30, 2024, reached RMB 21,015,949,000, compared to RMB 20,047,452,000 at the beginning of the year, reflecting a growth of 4.8%[89] - Net profit for the period amounted to RMB 252,858,000, with a significant contribution from other comprehensive income of RMB 136,797,000[89] - The company issued permanent capital instruments worth RMB 999,056,000 during the period, strengthening its financial position[89] - Total comprehensive income for the period was RMB 194,770,000, driven by a profit of RMB 116,061,000 and other comprehensive income adjustments[89] - The company paid dividends of RMB 130,816,000 for the year 2022, reflecting a commitment to shareholder returns[89] - The company's reserves stood at RMB 8,229,190,000 as of June 30, 2024, slightly down from RMB 8,281,297,000 at the end of 2022[89] Cash Flow and Financing Activities - Cash and cash equivalents decreased by 23.56% to RMB 2,229,078,000, primarily due to increased cash outflows from investment activities[30] - The company plans to issue ultra-short-term financing bills not exceeding RMB 10 billion and corporate bonds not exceeding RMB 6 billion[59] - The company issued the first tranche of ultra-short-term financing bills in 2024 with a face value of RMB 1 billion, a term of 89 days, and an annual interest rate of 2.28%[61] - The company issued the second tranche of ultra-short-term financing bills in 2024 with a face value of RMB 1 billion, a term of 60 days, and an annual interest rate of 1.78%[61] - Issued RMB 1 billion in ultra-short-term financing notes with a 180-day term and an annual interest rate of 1.88% on May 11, 2024[62] - Issued RMB 1 billion in ultra-short-term financing notes with a 267-day term and an annual interest rate of 1.85% on June 5, 2024[62] - Issued RMB 1 billion in medium-term notes with a 3-year term and an annual interest rate of 2.30% on May 15, 2024[63] - Issued RMB 1 billion in medium-term notes with a 3-year term and an annual interest rate of 2.26% on June 14, 2024[63] - Approved the issuance of up to RMB 2 billion in perpetual corporate bonds and up to RMB 6 billion in medium-term notes during the 2024 first extraordinary general meeting[65][66] - Completed the placement of 132 million new H shares at HKD 13.20 per share, raising approximately HKD 1.7424 billion in gross proceeds and HKD 1.7253 billion in net proceeds[67] - As of June 30, 2024, approximately HKD 216.29 million of the placement proceeds remained unused, with no significant changes expected in the use of funds[67] - Issued the fifth tranche of ultra-short-term financing bills on July 11, 2024, with a face value of RMB 1 billion, a 90-day term, and an annual interest rate of 1.72%[71] - Issued the third tranche of medium-term notes (innovation notes) on August 21, 2024, with a face value of RMB 1 billion, a 3-year term, and an annual interest rate of 2.27%[74] - Cash flow from operating activities for the six months ended June 30, 2024, was RMB 30,440,000, a significant improvement from a negative RMB 463,336,000 in the same period last year[90] - Cash outflow from operating activities was RMB 199,078,000, primarily due to income tax payments of RMB 229,518,000[90] - Investment activities resulted in a net cash outflow of RMB 4,100,130 thousand, primarily due to the purchase of a subsidiary for RMB 2,942,238 thousand and property, plant, and equipment for RMB 881,546 thousand[91] - Financing activities generated a net cash inflow of RMB 3,614,050 thousand, driven by new bank and other borrowings of RMB 84,852,277 thousand and new corporate bonds of RMB 1,998,113 thousand[91] - Cash and cash equivalents decreased by RMB 685,158 thousand, with the ending balance at RMB 2,229,078 thousand compared to RMB 6,342,573 thousand in the same period last year[92] Strategic Investments and Acquisitions - The company completed the acquisition of 100% equity in Tietto Minerals Limited and the controlling stake in the Komahun Gold Mine, expanding its presence in the West African mining market[20] - Geological exploration investment amounted to RMB 42 million, adding 14.31 tons of gold metal reserves[20] - The company plans to focus on production organization to increase output and efficiency, particularly at key mines such as Xiadian, Dayingezhuang, and Zaozigou, aiming to improve recovery rates and expand production capacity[42] - The company will accelerate the construction of key projects, including the Ruihai Mining project and capacity expansion projects at Xiadian and Dayingezhuang mines, to ensure timely completion and operational effectiveness[42] - The company aims to enhance resource reserves by increasing geological exploration efforts and accelerating mergers and acquisitions of mining rights in key domestic and overseas areas[42] - The company will continue to implement ESG principles, focusing on safety, green development, compliance, and harmonious operations to improve overall operational quality[42] - The company successfully acquired a 90.52% stake in Tietto Minerals Limited for AUD 651,864,000 (RMB 3,081,164,000), enhancing its overseas operations and profitability[122] - Tietto Minerals contributed RMB 197,984,000 to the company's revenue and RMB 18,214,000 to its consolidated profit for the six months ending June 30, 2024[126] Shareholder and Management Information - As of June 30, 2024, the total number of shareholders is 1,271, with 2 holding domestic shares and 1,269 holding H-shares[45] - Shandong Zhaojin Group Co., Ltd. holds 18.18% of the company's registered capital, with 93.58% of the total domestic shares and 18.89% of the total H-shares[47] - Zijin Mining Group Co., Ltd. holds 19.22% of the company's registered capital, with 23.86% of the total H-shares[47] - Van Eck Associates Corporation, as the investment manager for VanEck Gold Miners ETF, holds 6.37% of the company's registered capital and 7.91% of the total H-shares[48] - State Street Bank & Trust Company holds 5.63% of the company's registered capital and 6.99% of the total H-shares, with shares available for lending[48] - Key executives, including Chairman Jiang Guipeng and Executive Director Duan Lei, hold small percentages of H-shares, with Jiang Guipeng holding 0.004% and Duan Lei holding 0.0007% of the total H-shares[51] - The company has a total of 6,801 employees as of June 30, 2024[59] - The company proposed a final dividend of RMB 0.04 per share (pre-tax) for the year ended December 31, 2023[59] - The company's directors, supervisors, and senior management hold shares and related interests as disclosed under the Securities and Futures Ordinance[52] - The company's total remuneration for key management personnel increased to RMB 6,044 thousand from RMB 4,693 thousand[139] Market and Price Trends - The average price of Au9999 gold on the Shanghai Gold Exchange was RMB 514.12 per gram, an increase of 18.98% compared to the same period last year[19] - The London spot gold price reached USD 2,330.90 per ounce at the end of June, an increase of 12.34% from the beginning of the year[19] - Revenue from gold sales accounted for 92.9% of total revenue, reaching RMB 4,299,037 thousand[102] - Mainland China contributed RMB 4,557,731 thousand to total revenue, representing 98.5% of total revenue[104] - Revenue recognized at a point in time was RMB 4,704,440 thousand, accounting for 98.5% of total revenue[104] - Total revenue for the first half of 2024 reached RMB 3,446,912 thousand, with gold mining contributing RMB 3,163,084 thousand, copper mining contributing RMB 127,866 thousand, and other segments contributing RMB 155,962 thousand[106] - Revenue from mainland China accounted for RMB 3,535,171 thousand, while overseas revenue was RMB 7,963 thousand[106] Financial Instruments and Fair Value - The fair value of financial assets and liabilities as of June 30, 2024, shows a total of RMB 2,137,759 thousand, with RMB 1,542,886 thousand classified as Level 1, RMB 326,105 thousand as Level 2, and RMB 268,768 thousand as Level 3[148] - The fair value of financial liabilities as of June 30, 2024, totals RMB 13,002,558 thousand, including RMB 4,858,398 thousand for interest-bearing bank and other borrowings and RMB 8,144,160 thousand for corporate bonds[142] - The fair value of financial assets as of June 30, 2024, includes RMB 574,291 thousand for equity investments designated at fair value through other comprehensive income and RMB 1,264,533 thousand for financial assets at fair value through profit or loss[148] - The sensitivity analysis indicates that a 1% increase/decrease in the discount rate would result in a decrease/increase in fair value by RMB 2,026,000 and RMB 2,083,000, respectively, for financial assets included in other long-term assets[147] - The fair value of non-listed equity investments is estimated using market-based valuation techniques, with adjustments made for liquidity and size differences among comparable companies[144] - The fair value of financial assets measured at fair value through other comprehensive income (FVTOCI) is RMB 656,878 thousand for equity investments[150] - The fair value of financial assets measured at fair value through profit or loss (FVTPL) is RMB 1,500,538 thousand, with RMB 1,166,842 thousand in Level 1

Financial Performance - Revenue for the six months ended June 30, 2024, was approximately RMB 4,627,203,000, an increase of about 34.24% compared to the same period last year[3] - Net profit for the same period was approximately RMB 726,420,000, representing a growth of about 98.82% year-on-year[3] - Profit attributable to equity holders of the parent company was approximately RMB 552,793,000, an increase of about 118.62% compared to the previous year[3] - Basic and diluted earnings per share attributable to ordinary shareholders of the parent company was approximately RMB 0.12, reflecting a growth of about 200.00% year-on-year[3] - The company reported a comprehensive income of RMB 632,768,000 for the period, compared to RMB 307,416,000 in the previous year[5] - The group’s revenue for the period was approximately RMB 4,627,203,000, representing a year-on-year increase of about 34.24% compared to RMB 3,446,912,000 in the same period last year[38][50] - Net profit for the period was approximately RMB 726,420,000, an increase of about 98.82% from RMB 365,360,000 in the same period last year[39] - The group's attributable profit to equity holders was approximately RMB 552,793,000, up about 118.62% from RMB 252,858,000 in the same period last year[41] Assets and Liabilities - Total non-current assets as of June 30, 2024, amounted to RMB 38,858,227,000, up from RMB 33,830,534,000 at the end of December 2023[6] - Current assets totaled RMB 13,699,314,000, compared to RMB 13,036,862,000 at the end of December 2023[6] - Total liabilities increased to RMB 12,284,037,000 from RMB 12,243,691,000 at the end of December 2023[6] - Total assets as of June 30, 2024, amounted to RMB 52,557,541,000, with segment assets from gold mining at RMB 42,234,489,000[13] - The company reported a net asset value of RMB 24,530,094,000 as of June 30, 2024, an increase from RMB 22,244,326,000 at the end of 2023[7] - Non-current liabilities totaled RMB 15,743,410,000, up from RMB 12,379,379,000 in the previous period[7] - The company’s total liabilities reached RMB 28,027,447,000, with total liabilities from the gold mining segment at RMB 4,453,128,000[13] - Total liabilities as of June 30, 2024, amounted to approximately RMB 28,027,447,000, an increase of about 13.83% compared to RMB 24,623,070,000 as of December 31, 2023[69] Production and Sales - Total gold production for the period was approximately 13,178.35 kg (about 423,693.18 ounces), reflecting a year-on-year growth of about 11.98%[40][47] - Gold sales contributed RMB 4,299,037 thousand, while copper sales accounted for RMB 149,620 thousand for the six months ended June 30, 2024[17] - The average gold price in the first half of the year was RMB 514.12 per gram, an increase of 18.98% compared to RMB 432.09 per gram in the same period last year[46] - The consolidated gold cost was approximately RMB 209.99 per gram, a decrease of about 2.18% from RMB 214.67 per gram in the same period last year[52] - The group's sales cost was approximately RMB 2,650,560,000, an increase of about 26.07% compared to RMB 2,102,505,000 in the same period last year[54] Expenses and Financial Costs - Interest income for the period was RMB 110,366,000, while financial costs amounted to RMB 264,207,000[13] - Administrative and other operating expenses were approximately RMB 1,130,721,000, an increase of about 30.63% from RMB 865,568,000 in the same period last year[58] - The group's financial costs decreased by about 15.11% to approximately RMB 264,207,000 from RMB 311,238,000 in the same period last year[59] Investments and Acquisitions - The company successfully acquired 90.52% of Tietto Mineral Limited, enhancing its overseas business expansion strategy[34] - The cash consideration for the acquisition of Tietto was AUD 651,864,000, equivalent to approximately RMB 3,081,164,000[35] - The company completed the acquisition of 100% equity in Tietto Minerals Limited, expanding its presence in the West African mining market[47] - The company announced a conditional offer to acquire all shares of Tietto at a revised offer price of AUD 0.68 per share, with a total consideration of approximately AUD 733 million (equivalent to about HKD 3.718 billion)[103] Dividends and Shareholder Returns - The board of directors did not recommend the distribution of an interim dividend for the six months ended June 30, 2024[3] - The proposed final ordinary share dividend is RMB 0.04 per share, totaling approximately RMB 136,093,000 for the year 2023, compared to RMB 130,816,000 for 2022[22] - The company proposed a final dividend of RMB 0.04 per share for the year ended December 31, 2023[91] Corporate Governance and Compliance - The company has complied with the Corporate Governance Code during the period from January 1, 2024, to June 30, 2024, with no known violations by the board of directors[111] - The Audit Committee, consisting of three independent non-executive directors, has reviewed the unaudited interim report and performance announcement for the six months ending June 30, 2024, confirming compliance with applicable accounting standards and legal requirements[113] Future Plans and Strategies - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[9] - The group aims to accelerate the construction of key projects and enhance research and development efforts, with a focus on 22 "one enterprise, one topic" projects and 10 major research initiatives for the year[79] - The group plans to enhance production organization and optimize indicators to increase production efficiency, focusing on key mines such as Xiadian Gold Mine and Dayingezhuang Gold Mine[79] - The company plans to issue up to RMB 100 billion in short-term financing bonds and RMB 60 billion in corporate bonds in China[91]

Investment Rating - The investment rating for the company is "Outperform the Market" [4][13]. Core Views - The company is a high-quality Hong Kong gold mining enterprise, integrating exploration, development, mineral processing, and smelting operations, focusing on the gold industry [4]. - The company has a robust domestic mining potential, with a total gold resource of 1,185.01 tons and an average grade of 3.54 grams per ton as of the end of 2023 [4]. - The company is actively pursuing a "50% domestic, 50% international" strategy to enhance its global competitiveness in the gold mining sector [5]. Summary by Sections Company Overview - The company has core operating mines including the Xiadian Gold Mine and Dayinge Gold Mine, with ongoing projects such as the marine gold mine and recent acquisitions including the Abujar and Sierra Leone mines [4][5]. Strategic Partnerships - In November 2022, Zijin Mining acquired a 20% stake in the company for HKD 4.395 billion, becoming the second-largest shareholder, which is expected to enhance resource allocation and corporate governance through a "Five Synergies" cooperation strategy [4][5]. Financial Performance - The company reported revenues of HKD 8,423.62 million in 2023, with a projected increase to HKD 11,072.04 million in 2024, reflecting a year-on-year growth of 31.4% [6]. - Net profit for 2023 is estimated at HKD 686.43 million, with projections of HKD 1,300.85 million in 2024, indicating a significant year-on-year increase of 89.5% [6]. Earnings Forecast - The company expects gold sales to reach 19.4 tons in 2024, with revenues growing at rates of 33%, 31%, and 36% for the years 2024 to 2026, respectively [7]. - The projected average gold prices for 2024, 2025, and 2026 are estimated at RMB 530, 550, and 580 per gram [7]. Valuation - The company is valued using a PB (Price to Book) method, with expected BPS (Book Value per Share) of RMB 5.89, 6.38, and 7.26 for 2024 to 2026, respectively [5]. - The estimated reasonable value range for the stock in 2024 is between HKD 16.46 and 17.72 per share [5].

招金矿业(1818) 首发报告 买入 2024 年 6 月 21 日 黄金行业优质高成长公司,增长潜力巨大,目标价 17.46 港元 业绩高速增长:公司 2023 年全年实现销售收入 84.24 亿人民币 (下同),较去年增长 6.82%;实现毛利 33.70 亿,同比增长 26.90%;毛利率为 40.1%,同比增长 6.33 个百分点;实现归母净 利润 6.86 亿元,同比增长 70.77%,业绩实现大幅增长。2023 年 全年公司完成黄金产量 24.68 吨,同比下滑 9.75%;其中实现矿 产金 17.58 吨,同比下降 8.63%,冶炼加工金为 7.11 吨,同比下 滑 12.39%。矿产金产量下滑主要是因为公司买断金减少所导致。 海域金矿未来可期:海域金矿从 2019 年 7 月取得采矿许可证后 正式开始建设,截至目前,海域金矿项目仍处于项目建设阶段, 按照项目规划,海域金矿将于 2025 年实现初步建成。该项目采 用地下开采,拟采用粗碎-半自磨+顽石破碎-浮选流程,选矿回 收率预计可以达到 97%,采选规模为 396 万吨矿石/年,项目总投 资约为 60 亿元人民币。在整体投产达产后,预计海域金 ...

Financial Performance - Revenue for 2023 reached RMB 8,423,618 thousand, showing an increase compared to previous years[9] - Gross profit for 2023 was RMB 3,370,285 thousand, reflecting a significant rise from RMB 2,655,912 thousand in 2022[9] - Net profit attributable to equity holders of the company for 2023 was RMB 686,430 thousand, up from RMB 401,952 thousand in 2022[9] - Earnings per share (EPS) for 2023 stood at RMB 0.14, compared to RMB 0.07 in 2022[9] - Total assets for 2023 reached RMB 46,867,396 thousand, an increase from RMB 45,887,495 thousand in 2022[10] - Cash and cash equivalents decreased to RMB 2,916,103 thousand in 2023 from RMB 3,583,213 thousand in 2022[10] - Total liabilities for 2023 were RMB 24,623,070 thousand, compared to RMB 25,840,043 thousand in 2022[10] - Net assets increased to RMB 22,244,326 thousand in 2023 from RMB 20,047,452 thousand in 2022[10] - Revenue for 2023 was RMB 8,423,618 thousand, an increase of 6.82% compared to 2022[16] - Net profit for 2023 was RMB 838,418 thousand, an increase of 49.67% compared to 2022[17] - Basic and diluted earnings per share for 2023 were RMB 0.14, an increase of 100% compared to 2022[17] - The company proposed a cash dividend of RMB 0.04 per share for 2023, the same as in 2022[17] - Sales cost decreased by 3.37% to RMB 5,053,333,000 due to reduced buyout gold sales[36] - Gross profit increased by 26.90% to RMB 3,370,285,000, driven by higher gold prices and increased self-produced gold sales[36] - Gross margin improved by 6.33% to 40.01%[36] - Other income and gains decreased by 6.88% to RMB 526,967,000 due to reduced gains from financial instrument settlements[36] - Administrative and other operating expenses increased by 11.44% to RMB 2,132,632,000, mainly due to impairment losses on property, plant, and equipment[37] - Net profit attributable to parent company owners surged by 70.77% to RMB 686,430,000, driven by higher gold prices and improved production management[39] - The company paid a final dividend of approximately RMB 130,816,000 for the fiscal year ended December 31, 2022, and proposed a final dividend of RMB 0.04 per share for 2023[65] - The company's distributable reserves as of December 31, 2023, were approximately RMB 4,379,653,000, with RMB 130,816,000 proposed as the final cash dividend for the year[67] - The company's financial statements for the year ended December 31, 2023, were prepared in accordance with applicable laws and disclosure requirements, reflecting a true and fair view of the company's financial position, performance, and cash flows[178] Gold and Copper Production - The company holds approximately 38.0986 million ounces of gold mineral resources and 15.1806 million ounces of recoverable gold reserves as of December 31, 2023[7] - Gold production in 2023 was 24,684.76 kg, a decrease of 9.75% compared to 2022[15] - Copper production in 2023 was 5,010 tons, an increase of 15.36% compared to 2022[16] - The company achieved a gold production of 24,684.76 kg and a net profit of approximately RMB 838,418,000 in 2023[21] - The company invested RMB 123 million in geological exploration, adding 33.83 tons of gold metal reserves, and completed the acquisition of 3 mining rights in Gansu Beishan, Hebei Fengye, and Sierra Leone[22] - As of the end of 2023, the company's total gold resources amounted to 1,185 tons, with recoverable reserves of 472 tons, according to JORC standards[22] - The company's Xiaodian Gold Mine has a total ore volume of 23.335 Mt and a metal content of 66.53 tons, with a grade of 2.85 g/t[23] - The Ruihai Gold Mine has a total ore volume of 51.370 Mt and a metal content of 249.66 tons, with a grade of 4.86 g/t[23] - The company's Dayingezhuang Gold Mine has a total ore volume of 41.650 Mt and a metal content of 105.50 tons, with a grade of 2.53 g/t[23] - The company's Jintingling Mining has a total ore volume of 1.241 Mt and a metal content of 3.94 tons, with a grade of 3.17 g/t[23] - The company's Zaozigou Gold Mine has a total ore volume of 4.425 Mt and a metal content of 20.49 tons, with a grade of 4.63 g/t[23] - Total gold resources for Zhaojin Mining amount to 528.46 tons (proven + controlled) and 656.55 tons (inferred), with an average grade of 3.69 g/t and 3.43 g/t respectively[25] - Total copper resources for Zhaojin Mining are 135.03 kt (proven + controlled) and 177.57 kt (inferred), with an average grade of 1.18% and 1.02% respectively[25] - The Xiaodian Gold Mine has a total gold resource of 66.53 tons (proven + controlled) and 63.56 tons (inferred), with an average grade of 2.85 g/t and 2.68 g/t respectively[26] - The Dayingezhuang Gold Mine holds 105.50 tons of gold (proven + controlled) and 99.99 tons (inferred), with an average grade of 2.53 g/t and 2.34 g/t respectively[26] - The Qinghe Mining gold resource is 21.70 tons (proven + controlled) and 5.45 tons (inferred), with an average grade of 6.59 g/t and 4.87 g/t respectively[24] - The Longxin Mining gold resource is 6.43 tons (proven + controlled) and 5.86 tons (inferred), with an average grade of 5.28 g/t and 2.75 g/t respectively[24] - The Gansu Xinrui gold resource is 7.79 tons (proven + controlled) and 13.02 tons (inferred), with an average grade of 2.62 g/t and 2.46 g/t respectively[24] - The Tonghui Mining copper resource is 40.75 kt (proven + controlled) and 15.39 kt (inferred), with an average grade of 1.65% and 1.19% respectively[24] - The Dishui Copper Mine has an inferred copper resource of 162.17 kt, with an average grade of 1.01%[25] - The Jintingling Mining gold resource is 3.94 tons (proven + controlled) and 3.82 tons (inferred), with an average grade of 3.17 g/t and 3.02 g/t respectively[26] - Daqinjia Mining's gold ore reserves total 0.234 million tonnes with an average grade of 3.93 g/t, containing 0.92 tonnes of gold[27] - Ruihai Mining's gold ore reserves amount to 51.370 million tonnes with an average grade of 4.86 g/t, containing 249.66 tonnes of gold[27] - Zhaojin Beijiang's gold ore reserves are 0.622 million tonnes with an average grade of 3.73 g/t, containing 2.32 tonnes of gold[27] - Minxian Tianhao's gold ore reserves total 2.912 million tonnes with an average grade of 2.51 g/t, containing 7.31 tonnes of gold[27] - Zhaojin Kunhe's gold ore reserves are 0.137 million tonnes with an average grade of 4.90 g/t, containing 0.67 tonnes of gold[27] - Fengning Jinlong's gold ore reserves amount to 1.727 million tonnes with an average grade of 3.02 g/t, containing 5.22 tonnes of gold[27] - Zaozigou Gold Mine's gold ore reserves total 4.425 million tonnes with an average grade of 4.63 g/t, containing 20.49 tonnes of gold[27] - Liangdang Zhaojin's gold ore reserves are 0.986 million tonnes with an average grade of 2.45 g/t, containing 2.42 tonnes of gold[27] - Zhaojin Baiyun's gold ore reserves total 2.648 million tonnes with an average grade of 3.43 g/t, containing 9.09 tonnes of gold[27] - Qinghe Mining's gold ore reserves amount to 3.293 million tonnes with an average grade of 6.59 g/t, containing 21.70 tonnes of gold[27] - Gold ore consumption in 2023 was 6,456,323 tons with an average grade of 2.37 g/t, and 368 gold exploration drill holes were completed[28] - Copper ore consumption in 2023 was 42,640 tons with an average grade of 1.19%, and 67 copper exploration drill holes were completed[29] - The average recovery rate for gold production mines is approximately 91.31%, with a dilution rate of about 4.03%[32] - The average recovery rate for the copper production mine is approximately 94.89%, with a dilution rate of about 9.52%[34] - Total gold metal reserves for the company amounted to 386.78 tons, with an average grade of 3.20 g/t[28] - Total copper metal reserves for the company amounted to 96.49 kt, with an average grade of 1.11%[28] - Exploration drilling for gold in 2023 totaled 125,396.83 meters, while copper exploration drilling totaled 22,579.20 meters[28][29] Strategic Development and Expansion - The company aims to achieve a "double H" development strategy, targeting half of its production from domestic and half from international sources[7] - The company is recognized as a national high-tech enterprise with leading production technologies and equipment in the gold industry[7] - The company operates in multiple regions across China, with a strong presence in Shandong Province, which is a major gold-producing area[7] - The company's strategic focus includes resource prioritization and scale expansion to enhance competitiveness in the global gold mining industry[7] - The company's gold resources in Zhaoyuan City account for approximately one-tenth of China's total remaining gold resources[7] - The company plans to implement a production expansion plan to enhance the profitability of its core business, focusing on converting capacity into output and output into efficiency[49] - Key projects include the 12,000 tons/day mining and processing at Ruihai Mining, the 8,000 tons/day capacity expansion at Dayingezhuang Gold Mine, and the second-phase infrastructure construction at Jintingling Caogoutou[49] - The company aims to tackle technical challenges such as deep resource mining, refractory ore processing, and tailings management to transform resource advantages into economic benefits[49] - The company will increase exploration efforts in key mining areas, including the Zhaoping Fault Zone and crisis mines, to ensure production continuity[49] - The company will focus on cost reduction in mining, mineral processing, and bulk material consumption to improve efficiency[50] - The company integrates ESG principles into all aspects of production and operations, promoting sustainable development and enhancing core competitiveness[50] - The company emphasizes safety, green practices, innovation, and low-carbon operations to build a modern mine with high efficiency and social recognition[50] Market and Price Trends - The international gold price opened at $1,822.79/oz and closed at $2,062.68/oz in 2023, with a yearly average of $1,943.30/oz, reaching a high of $2,146.79/oz and a low of $1,804.50/oz[20] - The Shanghai Gold Exchange 9995 gold price opened at RMB 410.20/g, reached a high of RMB 569.40/g, and closed at RMB 480.38/g, with a yearly average of RMB 452.49/g, up 16.31% year-on-year[20] - Revenue for the year increased by 6.82% to RMB 8,423,618,000, driven by higher gold prices[35] Corporate Governance and Leadership - Jiang Guipeng, the company's Chairman, has extensive experience in the mining industry and has received multiple awards, including the first prize of the China Gold Association Science and Technology Award[51] - Duan Lei, the company's Executive Director and Executive President, has a strong background in mining engineering and has received several industry awards[52] - Wang Ligang, the company's Executive Director and Vice President, holds an EMBA degree from Tsinghua University and has extensive experience in corporate governance and investment analysis[52] - Long Yi, aged 48, holds a Ph.D. from Northeastern University and serves as the Non-Executive Director and Vice Chairman of the company, as well as the Vice President of Zijin Mining Group[53] - Li Guanghui, aged 52, is a Non-Executive Director and holds the position of Deputy General Manager at Zhaojin Group, with extensive experience in the mining and jewelry industries[53] - Luan Wenjing, aged 50, is a Non-Executive Director and serves as a member of the Party Committee, Director, and Deputy General Manager at Zhaojin Group, with a background in economics and political work[53] - Chen Jinrong, aged 65, is an Independent Non-Executive Director with expertise in corporate financial management, capital operations, and risk control, and holds multiple academic and professional qualifications[54] - Cai Sicong, aged 65, is an Independent Non-Executive Director with a strong background in securities and business management, holding multiple advanced degrees and professional memberships[54] - Wei Junhao, aged 63, is an Independent Non-Executive Director and a professor at China University of Geosciences, with over 30 years of experience in geological research and mineral exploration[55] - Wei Junhao has led over 100 national, provincial, and enterprise-level projects, significantly contributing to mineral resource discoveries, including adding 20 tons of reserves at the Wulong Gold Mine[55] - Wei Junhao's "Metallogenic Field Theory" is well-regarded in the domestic gold industry, and he has supervised over 150 master's and doctoral students[55] - Mr. Shen Shifu, aged 58, serves as an independent non-executive director and has extensive experience in mineral processing and resource utilization technologies, holding over 20 national patents[56] - Mr. Weng Zhanbin, aged 58, resigned as executive director and chairman in March 2023, with nearly 30 years of experience in the gold production industry and multiple national awards[57] - Mr. Leng Haixiang, aged 53, serves as the chairman of the board of supervisors and has a background in law and government administration[58] - Mr. Hu Jin, aged 48, serves as a shareholder representative supervisor and has extensive experience in auditing and management within the mining industry[59] - Ms. Zhao Hua, aged 47, serves as an employee representative supervisor and has over a decade of experience in financial management[59] - The company's board of directors consists of 11 members, including 4 executive directors, 3 non-executive directors, and 4 independent non-executive directors, representing 36% of the total board members[157][158] - The board held 7 meetings, 2 shareholder meetings, and 2 class meetings during the year, with detailed attendance records provided for each director[159][160] - The board ensures independent opinions by holding annual meetings between the chairman and independent non-executive directors without other directors present[161] - Board meeting notices are sent at least 14 days in advance, and meeting documents are distributed at least 3 days prior to ensure adequate preparation time[161] - Detailed meeting minutes are recorded, including any concerns or objections raised by directors, and are reviewed and confirmed by the chairman or committee chair[161] - The company's Board of Directors consists of 3 non-executive directors and 4 independent non-executive directors, accounting for approximately 63.63% of the total board members[164] - The Nomination and Remuneration Committee held one meeting in 2023, with all members attending in person and no proxy attendance[167] - The company's nomination policy for executive directors focuses on selecting individuals with extensive experience in gold mining and management within the group[168] - The Chairman, Mr. Jiang Guipeng, is responsible for the overall corporate development direction and business strategy of the group in 2023[163] - The CEO, Mr. Duan Lei, is responsible for the daily management and execution of approved strategies of the group in 2023[163] - The Nomination and Remuneration Committee reviewed and approved the "2023 Annual Salary Assessment Measures for the President and Senior Management" in 2023[167] - The company provides directors with sufficient resources to perform their duties, including the ability to hire external consultants at the company's expense when necessary[162] - All directors have access to up-to-date information on regulations and ongoing responsibilities through the Board Secretary/Company Secretary[162] - The company has purchased directors' liability insurance for its board members[162] - The company has a three-year service contract with each non-executive and independent non-executive director[164] - The board composition includes 90.91% male and 9.09% female members, with age groups distributed as 18.18% (41-45), 27.27% (46-50), 18.18% (51-55), 9.09% (56-60), and 27.27% (61-65)[171] - Educational background of board members: 27.27% hold bachelor's degrees, 36.36% hold master's degrees, and 36.36% hold doctoral degrees[171] - Professional experience of board members: 63.

Group 1 - Gold stocks have generally rebounded, with notable increases in share prices for companies such as Zhaojin Mining (up 3.29% to HKD 13.18), Shandong Gold (up 2.87% to HKD 18.64), Zijin Mining (up 2.6% to HKD 18.16), and China Gold International (up 1.99% to HKD 48.8) [1][1][1] - On April 19, spot gold prices reached USD 2400 per ounce for the first time since April 12, with a daily increase of 0.94% [1][1][1] - The rise in gold prices is attributed to hawkish comments from Federal Reserve officials and positive U.S. economic data, which have driven the U.S. dollar index higher without further downward pressure on gold prices [1][1][1] Group 2 - The escalating situation in the Middle East has increased the appeal of gold as a safe-haven asset due to rising geopolitical risks [1][1][1] - Reports from local media indicate explosions in regions such as Baghdad and Babylon in Iraq, as well as in southern Syria and Isfahan in Iran, contributing to the heightened geopolitical tensions [1][1][1]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 14.62 HKD [1]. Core Views - The company's Q1 2024 revenue increased significantly, with a net profit attributable to shareholders reaching 1.981 billion RMB, a year-on-year increase of 13.94% [1]. - The gross margin improved significantly, reaching 42.10%, up 23.17 percentage points year-on-year, while the debt ratio decreased to 52.59%, down 5.79 percentage points year-on-year [1]. - The company is actively increasing its resource reserves through exploration and acquisitions, with a total gold resource of 1,185 tons by the end of 2023 [1]. - The development of the Haiyu gold mine is progressing well, expected to be operational by 2025, with an anticipated annual gold production of 15-20 tons [1]. - The rising gold prices are expected to benefit the company's profitability, with an average gold price of 489.18 RMB per gram in Q4 2023, reflecting a 4% increase [1]. Summary by Sections Financial Performance - In Q1 2024, the company achieved a revenue of 2.21 billion RMB, a year-on-year increase of 124.30% [1]. - The net profit for Q1 2024 was 1.981 billion RMB, showing a year-on-year growth of 13.94% [1]. - The gross profit margin for Q1 2024 was 42.10%, an increase of 3.10 percentage points year-on-year [1]. Resource Development - The company has made significant progress in exploration and acquisitions, with a total gold resource of 1,185 tons by the end of 2023 [1]. - The Haiyu gold mine project is on track for completion in 2025, with a planned production capacity of 1.2 million tons per day [1]. Market Outlook - The report indicates that gold prices are entering a rising trend, which is expected to enhance the company's profitability [1]. - The average gold price in Q1 2024 increased by 16% compared to the previous year, indicating strong market conditions [1]. Profit Forecast - The company is projected to achieve net profits of 860 million RMB, 1.438 billion RMB, and 2.9 billion RMB for the years 2024, 2025, and 2026 respectively [1][6].

Financial Performance - For Q1 2024, the company reported a total revenue of RMB 1,981,094,650.84, representing an increase of 14.0% compared to RMB 1,738,727,809.55 in Q1 2023[15]. - The net profit for Q1 2024 was RMB 278,698,767.52, which is a significant increase of 156.5% from RMB 108,821,404.17 in Q1 2023[15]. - The company's basic earnings per share for Q1 2024 was RMB 0.07, compared to RMB 0.03 in Q1 2023, indicating a 133.3% increase[15]. - Operating revenue for Q1 2024 reached RMB 950.99 million, a 29.5% increase from RMB 734.30 million in Q1 2023[18]. - Operating profit for Q1 2024 was RMB 341.12 million, compared to RMB 121.32 million in Q1 2023, reflecting a significant growth[18]. - Net profit attributable to shareholders for Q1 2024 was RMB 289.64 million, up from RMB 106.73 million in Q1 2023, marking an increase of 171.5%[18]. - Basic earnings per share for Q1 2024 was RMB 0.09, compared to RMB 0.03 in Q1 2023[18]. Assets and Liabilities - As of March 31, 2024, the total assets of Zhaojin Mining Industry Company Limited increased to RMB 49,033,933,957 from RMB 46,738,256,346 as of December 31, 2023, reflecting a growth of approximately 6.2%[7][9]. - Current assets rose to RMB 15,740,198,804, up from RMB 13,036,861,352, indicating an increase of about 20.7%[7]. - Total liabilities increased to RMB 27,029,380,322 from RMB 24,578,812,762, marking an increase of about 10.0%[9]. - Short-term borrowings rose from RMB 4,658,722,307 to RMB 5,499,436,830, an increase of approximately 18.0%[9]. - The company's total assets increased from RMB 39,770,214,179 on December 31, 2023, to RMB 41,947,002,041 by March 31, 2024, reflecting a growth of 5.5%[13]. - Current assets rose from RMB 16,123,294,096 to RMB 18,062,697,806, marking an increase of 12.0%[13]. - Total liabilities increased from RMB 17,590,358,213 to RMB 19,545,820,717, which is an increase of 11.1%[13]. Equity and Reserves - The company's total equity decreased slightly from RMB 22,159,443,584 to RMB 22,004,553,635, a decline of about 0.7%[9]. - The total equity attributable to shareholders increased from RMB 22,179,855,966 to RMB 22,401,181,325, a rise of 1.0%[13]. - The company’s capital reserve decreased from RMB 2,686,631,359 to RMB 2,550,789,112, a decline of about 5.1%[9]. Cash Flow and Investments - Cash flow from operating activities for Q1 2024 was RMB 241.55 million, indicating strong operational cash generation[21]. - Cash flow from investing activities showed a net outflow of RMB 1.01 billion in Q1 2024, primarily due to investments in fixed assets[21]. - Cash flow from financing activities generated a net inflow of RMB 2.42 billion, driven by new borrowings of RMB 8.40 billion[21]. - Total cash and cash equivalents increased by RMB 1.66 billion in Q1 2024, reflecting improved liquidity[21]. - Cash and cash equivalents increased significantly from RMB 3,465,045,143 to RMB 5,123,495,002, representing a growth of approximately 47.8%[7]. - The company’s cash and cash equivalents increased from RMB 1,970,366,714 to RMB 3,273,737,006, a growth of 66.1%[11]. Inventory and Receivables - The company reported an increase in inventory from RMB 5,154,576,776 to RMB 5,461,189,676, which is an increase of approximately 5.9%[7]. - The company’s other receivables surged from RMB 292,108,684 to RMB 527,606,576, reflecting an increase of about 80.5%[7]. Research and Development - Research and development expenses for Q1 2024 were RMB 61,319,600.92, up from RMB 45,926,223.54 in Q1 2023, reflecting a growth of 33.4%[15]. - Research and development expenses rose to RMB 40.06 million in Q1 2024, significantly higher than RMB 11.06 million in Q1 2023, indicating a focus on innovation[18]. Future Plans - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[15]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[18].

Investment Rating - The report assigns a "Buy" rating for the company's H shares, with a target price of 13.24 HKD per share, compared to the current price of 9.19 HKD [4]. Core Insights - In Q4 2023, the company's net profit attributable to shareholders reached 321 million RMB, representing a quarter-on-quarter increase of 184%, slightly exceeding expectations. For the full year 2023, the company achieved a revenue of 8.424 billion RMB, a year-on-year increase of 5.47%, and a net profit of 686 million RMB, a year-on-year increase of 70.78% [2][3]. - The average gold price in Q4 2023 increased, with COMEX gold averaging 1986.9 USD/oz, up 14.5% year-on-year and 2.0% quarter-on-quarter [2]. - The company has potential for growth in mineral gold production, with expectations for new mines to come online, including the 70% owned Ruihai Mining and the wholly-owned Dayingezhuang gold mine [2]. Financial Summary - The company forecasts earnings per share (EPS) of 0.31, 0.48, and 0.74 RMB for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (PE) ratios of 27.8, 17.6, and 11.5 [2][3]. - Revenue is projected to grow from 8.424 billion RMB in 2023 to 9.098 billion RMB in 2024, with a growth rate of 8.0% [3][7]. - The company's debt-to-asset ratio was 52.54% at the end of 2023, a decrease of 3.77 percentage points from the beginning of the year [2][7].