Zijin Mining(02899)2023-08-27 10:18Financial Performance - For the six months ended June 30, 2023, Zijin Mining Group achieved a revenue of RMB 150.334 billion, with a total profit of RMB 15.545 billion and a net profit attributable to shareholders of RMB 10.302 billion[2]. - Operating revenue for the first half of 2023 reached RMB 150.33 billion, a 13.5% increase from RMB 132.46 billion in the same period of 2022[6]. - Net profit for the first half of 2023 was RMB 12.83 billion, down 16.5% from RMB 15.43 billion in the first half of 2022[6]. - The company reported a total profit of RMB 15.55 billion, a decrease of 16.3% from RMB 18.57 billion in the first half of 2022[6]. - The total comprehensive income for the first half of 2023 was RMB 18.06 billion, an increase from RMB 14.60 billion in the same period of 2022[7]. - The company reported a significant increase in other comprehensive income, which rose to RMB 9.803 billion from RMB 5.061 billion, showing a growth of approximately 93.5%[5]. - Basic and diluted earnings per share for the first half of 2023 were both RMB 0.391, down from RMB 0.480 in the same period of 2022[7]. - The company reported a net profit of RMB 54.4 million from the gold segment of Zhongta Zela Fashang LLC, while Norton Goldfields Ltd reported a net loss of RMB 2.5 million[78]. Assets and Liabilities - As of June 30, 2023, the total assets of the group amounted to RMB 326.550 billion, while the net assets attributable to shareholders were RMB 98.943 billion[3]. - The total liabilities of the group reached RMB 192.469 billion, up from RMB 181.589 billion at the end of 2022, representing an increase of approximately 6.5%[5]. - The equity attributable to shareholders increased to RMB 98.943 billion from RMB 88.943 billion, marking a growth of around 11.3%[5]. - The company's total assets as of June 30, 2023, were RMB 5,061,350,431, reflecting a stable asset base compared to previous periods[22]. - The company's total equity as of June 30, 2023, was RMB 134.08 billion, up from RMB 111.06 billion as of June 30, 2022[68]. - The company's asset-liability ratio decreased by 0.39 percentage points to 58.94%[44]. Cash Flow and Investments - Cash flow from operating activities generated RMB 16.03 billion, an increase from RMB 15.58 billion in the same period last year[8]. - The company’s cash outflow from investment activities was RMB 19.95 billion, a decrease from RMB 25.33 billion in the previous year[8]. - The company’s cash and cash equivalents at the end of the first half of 2023 totaled RMB 19,750,269,606, up from RMB 18,193,038,181 at the end of the first half of 2022, marking an increase of about 8.6%[9]. - The company received RMB 30,116,355,509 in loans during the first half of 2023, an increase from RMB 28,389,177,578 in the same period of 2022, indicating a growth of approximately 6.1%[9]. - The company’s cash outflow for debt repayment in the first half of 2023 was RMB 24,084,544,316, compared to RMB 16,875,228,199 in the same period of 2022, reflecting an increase of about 42.5%[9]. Production and Sales - The production of copper, gold, zinc, and silver reached 490,000 tons, 32 tons, 240,000 tons, and 208 tons respectively, with year-on-year growth rates of 14.21%, 19.63%, 5.02%, and 10.92%[44]. - Gold production totaled 152,351 kg (4,898,195 ounces), a year-on-year decrease of 2.06%, while mined gold increased by 19.63% to 32,338 kg (1,039,690 ounces)[52]. - The total gold production reached 32,338 kg, with equity gold production at 27,461 kg, reflecting a strong operational performance across various mines[53]. - The average selling price of copper produced from mines was RMB 51,000 per ton, with a sales volume of 390,041 tons, resulting in revenue of RMB 19.89 billion, compared to RMB 55,145 per ton and 357,162 tons last year[60]. - The sales volume of gold produced from mines was 31,915 kg, generating revenue of RMB 12.67 billion, compared to 29,125 kg and RMB 10.47 billion in the same period last year[60]. Research and Development - Research and development expenses increased to RMB 733.16 million, a 65.5% rise compared to RMB 442.99 million in the previous year[6]. - The company is actively pursuing new energy and materials projects, with significant progress in lithium and renewable energy initiatives, including the completion of various mining and production facilities[45]. - The company plans to complete the first phase of its lithium carbonate project by the end of 2023, targeting an annual capacity of 20,000 tons[58]. Dividends and Shareholder Returns - The board proposed a cash dividend of RMB 0.5 per 10 shares for the first half of 2023, subject to shareholder approval[2]. - The company plans to distribute a cash dividend of RMB 0.5 per share (including tax), totaling approximately RMB 1.3 billion for the first half of 2023[48]. Market and Economic Outlook - The global economic recovery is gradually accumulating internal momentum, with traditional applications such as real estate expected to further support copper demand[80]. - The lithium market is anticipated to experience exponential growth in demand, driven by the rapid development of new energy vehicles and energy storage, with potential price increases in the second half of the year[80]. - The company expects copper prices to gradually rise in the second half of the year, supported by long-term supply shortages[80]. Safety and Governance - The company experienced a significant safety incident resulting in the loss of 6 lives at the Tibet Giant Dragon Copper Mine, highlighting the need for improved safety measures[48]. - The company has implemented a comprehensive safety production management system, continuously improving safety awareness and skills among all employees[81]. - The company has complied with the corporate governance code and most recommended best practices during the reporting period[91].