Zijin Mining(02899)2023-09-28 09:11Financial Performance - Zijin Mining Group reported a revenue increase of 15% year-on-year for the first half of 2023, reaching RMB 40 billion[1]. - The company achieved a net profit of RMB 5 billion, representing a 20% increase compared to the same period last year[1]. - The company has set a performance guidance of RMB 90 billion in revenue for the full year 2023, reflecting a 12% growth target[1]. - The total operating revenue reached RMB 150.3 billion, a year-on-year increase of 13.50%, while the total profit amounted to RMB 15.5 billion, reflecting a year-on-year decrease primarily due to rising production costs and declining metal prices[9]. - The company reported a net profit of RMB 9,655,314,949 for the first half of 2023, a decrease of 19.70% compared to RMB 12,024,218,650 in the same period last year[96]. - The company reported a total profit of RMB 15.55 billion, a decrease of 16.3% from RMB 18.57 billion in the previous year[129]. - Net profit attributable to shareholders of the parent company was RMB 10.30 billion, down 18.4% from RMB 12.63 billion year-on-year[129]. Production and Operations - User data indicated a 10% growth in active mining operations, with a total of 25 active sites as of June 2023[1]. - The company reported a 5% increase in gold production, totaling 1.5 million ounces in the first half of 2023[1]. - The company achieved a record production of 490,000 tons of copper, 32 tons of gold, 240,000 tons of zinc (lead), and 208 tons of silver, representing year-on-year increases of 14.21%, 19.63%, 5.02%, and 10.92% respectively[9]. - Copper production totaled 853,528 tons, representing a year-on-year increase of 9.8%, with mined copper at 492,241 tons (up 14.21%) and refined copper at 361,287 tons (up 4.32%)[19]. - Gold production was 152,351 kg (4,898,195 ounces), a decrease of 2.06%, with mined gold increasing by 19.63% to 32,338 kg (1,039,690 ounces)[21]. - Zinc production reached 394,614 tons, a year-on-year increase of 6.29%, with zinc concentrate production at 217,210 tons, up 4.26%[22]. - Lead production amounted to 22,929 tons, reflecting a year-on-year increase of 12.80%[22]. - Silver production totaled 522,487 kg, a decrease of 4.03% year-on-year, while silver from mining increased by 10.92% to 207,643 kg[24]. Market Expansion and Strategic Initiatives - Zijin Mining plans to expand its market presence in Southeast Asia, targeting a 30% increase in production capacity by 2025[1]. - The company is focusing on lithium production, with plans to increase output by 50% by the end of 2024[1]. - The company is advancing its new energy and materials projects, including the lithium salt lake project in Argentina, which is on track for production by year-end[12]. - The company aims to achieve a top 3-5 position globally in key economic indicators by 2030, focusing on green and high-tech development[18]. - The company plans to enhance its international operations and local workforce ratios, optimizing its headquarters employee structure[16]. Financial Position and Investments - The company’s debt-to-equity ratio improved to 0.4, indicating a stronger financial position compared to the previous year[1]. - As of the end of the reporting period, total assets were RMB 326.6 billion, an increase of 6.70% from the beginning of the period, and net assets attributable to shareholders were RMB 98.9 billion, up 11.24%[10]. - The company’s market capitalization reached RMB 294.9 billion as of June 30, 2023, reflecting a 13% increase from the beginning of the year[17]. - The company has invested RMB 12.52 billion in the Serbia Zijin Copper project, with an expected annual copper production of 150,000 to 160,000 tons from the mine after upgrades[44]. - The company has invested RMB 15.17 billion in the lithium salt lake project, with the first phase producing a batch of crude lithium carbonate[45]. Research and Development - The company is investing RMB 1 billion in new technology development for sustainable mining practices over the next three years[1]. - Research and development expenses rose by 65.50% to RMB 733.16 million, reflecting an increase in R&D projects[32]. - The company has made significant progress in technology innovation, holding a high-profile technology conference with over 200 industry experts to enhance its competitive edge[13]. Environmental and Social Responsibility - The company is focusing on sustainable practices, with green electricity equivalent to planting 3.59 million mature trees by the end of June[12]. - The company invested approximately RMB 557 million in environmental protection and ecological restoration, planting 1.196 million trees and restoring 2.531 million square meters of vegetation[75]. - The company achieved 100% online monitoring coverage for production wastewater and smelting dust, ensuring compliance with local environmental regulations[70]. - The company is actively promoting biodiversity protection and conducting biodiversity risk assessments in mining areas[75]. - The company provides monthly subsidies of RMB 100 to rural elderly over 80 years old and RMB 200 to orphans under 18, with annual donations reaching RMB 20 million, benefiting over 15,200 individuals[81]. Shareholder and Governance - The company has issued ordinary shares with a par value of RMB 0.1 per share as of June 30, 2023[55]. - The company has met the minimum public shareholding requirements as per listing rules[60]. - The total number of shareholders is 429,138, with H-share shareholders numbering 566 and A-share shareholders totaling 428,572[56]. - The top ten shareholders hold significant stakes, with the largest being Minxi Xinghang State-owned Assets Investment Management Co., Ltd. owning 6,083,517,704 A-shares, representing 23.11% of the issued shares[56]. Risk Management - The company faces risks from geopolitical factors, economic cycles, and market supply-demand dynamics, which may impact the prices of copper, gold, zinc, and lithium products[54]. - The company has implemented a hedging strategy to mitigate risks associated with commodity price fluctuations, ensuring stable operations[48]. - The company is enhancing its safety production management system and increasing safety training to mitigate risks associated with mining operations[54]. Compliance and Reporting - The financial report was approved by the board of directors on August 25, 2023[152]. - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance, reflecting the company's financial position as of June 30, 2023[155]. - The company continues to engage Ernst & Young as its auditor for the 2023 fiscal year, as resolved at the 2022 annual general meeting[106].