ZANGGE MINING(SZ:000408) Changjiang Securities·2025-09-21 23:30Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - The company reported a net profit attributable to shareholders of 1.053 billion yuan in Q2 2025, representing a quarter-on-quarter increase of 40.91%. The net profit excluding non-recurring items was 1.058 billion yuan, also up 41.12% quarter-on-quarter. The interim dividend was approximately 1.569 billion yuan, accounting for 87% of the net profit for the first half of 2025 [2][4] Summary by Sections Copper Segment - In the first half of 2025, the company achieved a copper production of 92,800 tons and sales of 92,700 tons, generating revenue of 7.562 billion yuan and a net profit of 4.166 billion yuan. The company’s investment income from its 30.78% stake in Giant Dragon Copper was 1.264 billion yuan, contributing 70.22% to the net profit attributable to shareholders, with a year-on-year increase of 4.09 billion yuan, or 47.82% [5] Lithium Segment - The company produced 5,170 tons of lithium carbonate in the first half of 2025, a year-on-year decrease of 11%, with sales of 4,470 tons, down 41% year-on-year. The average selling price (including tax) was 67,470 yuan per ton, while the average sales cost was 41,478 yuan per ton. The revenue from lithium carbonate was 267 million yuan, a year-on-year decrease of 57.90%, with a gross margin of 30.53%, down 19.75 percentage points year-on-year [5] Potassium Segment - The company produced 485,200 tons of potassium chloride in the first half of 2025, a year-on-year decrease of 7%, with sales of 535,900 tons, down 1% year-on-year. The average selling price (including tax) was 2,845 yuan per ton, an increase of 25.57% year-on-year. The average sales cost was 996 yuan per ton, a decrease of 7.36% year-on-year. Consequently, the revenue from potassium chloride was 1.399 billion yuan, a year-on-year increase of 24.60%, with a gross margin of 61.84%, up 13.56 percentage points year-on-year [6] Future Outlook - Looking ahead, the development potential of the three major business segments—copper, lithium, and potassium—remains promising. The second phase of the Giant Dragon project is expected to commence production by the end of 2025, with projected copper production reaching 92,000 to 108,000 tons. The long-term plan for the Giant Dragon project aims for a capacity of 600,000 tons, significantly enhancing profitability. Additionally, the accelerated development of the Tibet salt lake project is anticipated to inject potential lithium resources into the company’s future growth [7]