ZANGGE MINING(SZ:000408) Zheng Quan Shi Bao Wang·2025-08-03 10:05Core Viewpoint - Cangge Mining reported a mixed performance in its 2025 semi-annual report, with a decrease in revenue but significant growth in net profit, driven by its potassium fertilizer and copper mining businesses [1][2]. Group 1: Financial Performance - The company achieved operating revenue of 1.678 billion yuan, a year-on-year decrease of 4.74% [1]. - The net profit attributable to shareholders reached 1.8 billion yuan, an increase of 38.8% year-on-year [1]. - The net profit after deducting non-recurring items was 1.808 billion yuan, up 41.55% year-on-year [1]. - The total assets amounted to 16.893 billion yuan, with net assets attributable to shareholders at 15.723 billion yuan, and a debt-to-asset ratio of 7.03% [1]. Group 2: Business Segments - The potassium fertilizer business showed stable growth, with revenue from potassium chloride reaching 1.399 billion yuan, a year-on-year increase of 24.60% [2]. - The average selling price of potassium chloride was 2,845 yuan per ton, up 25.57% year-on-year, while the average sales cost decreased by 7.36% to 996 yuan per ton [2]. - The lithium salt business experienced a revenue decline of 57.90%, with sales amounting to 267 million yuan [4]. - The average selling price of lithium carbonate was 67,470 yuan per ton, while the average sales cost was 41,478 yuan per ton [4]. Group 3: Project Developments - The company is advancing its lithium extraction project in the Zangge Salt Lake, with significant progress in obtaining necessary permits [5]. - The lithium project is expected to start construction in Q3 2025, with an estimated construction period of 9 to 12 months [5]. - The Laos potassium project has received approval for its resource reserve report, with a total potassium chloride resource of 984 million tons [3]. Group 4: Copper Mining Contribution - Cangge Mining holds a 30.78% stake in Jilong Copper, which reported a copper production of 92,800 tons and revenue of 7.562 billion yuan [7]. - The investment income from Jilong Copper was 1.264 billion yuan, accounting for 70.22% of the company's net profit [7]. - The second phase of the Jilong Copper project is expected to be completed and put into production by the end of 2025 [7]. Group 5: Lithium Production Challenges - The company announced the suspension of lithium production due to low-grade lithium resources and the economic feasibility of extracting lithium from low-concentration brine [8]. - The company is now focusing on the comprehensive utilization of lithium resources in response to national policies [8]. - The mining license for the Chahar Salt Lake is set to expire on August 9, 2025, and the company is actively working on the renewal process [9].