ZANGGE MINING(SZ:000408) Zheng Quan Shi Bao Wang·2025-08-01 14:07Core Viewpoint - Cangge Mining reported a mixed performance in the first half of 2025, with a decrease in revenue but a significant increase in net profit, focusing on potassium and lithium resource development while navigating regulatory challenges [1][2][4]. Financial Performance - The company achieved operating revenue of 1.678 billion yuan, a year-on-year decrease of 4.74%, while net profit reached 1.8 billion yuan, an increase of 38.8% [1]. - The average selling price of potassium chloride was 2,845 yuan/ton, up 25.57% year-on-year, while the average sales cost was 996 yuan/ton, down 7.36% [2]. - The company reported potassium chloride production of 485,200 tons and sales of 535,900 tons, achieving 48.52% and 56.41% of the annual targets, respectively [2]. Business Operations - Cangge Mining is focusing on high-level development of salt lake resources, emphasizing cost control, quality improvement, and efficiency enhancement [1]. - In the lithium carbonate segment, the company produced 5,170 tons and sold 4,470 tons, meeting 47.00% and 40.64% of the annual targets, respectively [2]. - The average selling price of lithium carbonate was 67,470 yuan/ton, while the average sales cost was 41,478 yuan/ton, leading to a revenue of 267 million yuan, a year-on-year decrease of 57.90% [2]. Strategic Developments - Cangge Mining's investment in Jilong Copper Industry yielded a profit of 1.264 billion yuan, accounting for 70.22% of the company's net profit, with a year-on-year increase of 47.82% [3]. - The company is advancing the Xizang Mami Cuo project, having received necessary approvals and permits, with construction expected to start in Q3 2025 [3]. - Following a change in control to Zijin Mining, the company has appointed a new board and management team with diverse expertise in mining development and corporate governance [4]. Regulatory Compliance - The company has halted lithium resource development in response to regulatory notifications and is conducting a compliance review [4][5]. - Cangge Mining is actively engaging with regulatory authorities regarding the compliance of its lithium resource development activities and is working on the renewal of mining licenses [5].