Sinomine(SZ:002738) Zheng Quan Ri Bao Wang·2025-10-28 09:16Core Viewpoint - Zhongmin Resources plans to invest up to RMB 1 billion in safe and liquid financial products to enhance fund utilization efficiency and generate additional returns for shareholders while ensuring operational liquidity [1][2]. Financial Performance - For the first three quarters of 2025, Zhongmin Resources reported revenue of RMB 4.818 billion, a year-on-year increase of 34.99%, but net profit attributable to shareholders fell by 62.58% to RMB 200 million [2]. - In Q3 2025, the company achieved revenue of RMB 1.551 billion, up 35.19% year-on-year, with net profit attributable to shareholders increasing by 58.18% to RMB 115 million [2][3]. - The company's net profit excluding non-recurring items for Q3 2025 was also RMB 115 million, reflecting a significant year-on-year increase of 488.28% [2]. Business Segments - The rare light metals (cesium, rubidium) segment accounted for 21.67% of total revenue in the first half of 2025, growing by 50.43% with a gross margin of 72.24%, while the lithium battery segment's contribution decreased to 40.01% with a gross margin of 10.89% [3]. - The company’s performance has been affected by fluctuating lithium prices, with a notable decline in revenue from 2023 to 2024 due to falling lithium prices [2][3]. Cash Flow and Financial Management - As of the end of Q3 2025, Zhongmin Resources had cash and cash equivalents totaling RMB 4.365 billion, indicating a strong liquidity position [4]. - The company emphasizes the importance of managing idle funds effectively to ensure operational stability and project progress while avoiding over-reliance on financial product returns [1][3]. Market Outlook - The recent rebound in lithium prices, from RMB 60,000 per ton to above RMB 80,000 per ton, has positively impacted the company's profitability, although concerns remain about the sustainability of this price increase in the face of potential supply growth [3][5].