Zhihui Mining 2025 Net Profit Jumps 168.3% to RMB150 Million; Proposes First Dividend Post-IPO

Bulletin Express03-30

Zhihui Mining (02546) released its 2025 audited results, highlighting a sharp rebound in operations after completing an IPO on the Hong Kong Main Board in December 2025.

Financial Performance • Revenue doubled to RMB616.01 million, up 104.4% year on year, driven by higher concentrate output and stronger copper and silver prices. • Gross profit rose 114.4% to RMB224.06 million; gross margin improved to 36.4% from 34.7%. • Net profit surged 168.3% to RMB150.04 million; basic EPS climbed to RMB0.41 from RMB0.15. • Return on net assets increased to 9.2% (2024: 5.4%), while return on total assets reached 7.3% (2024: 3.8%).

Operational Highlights • Resumption of full-year operations and commissioning of the new Pb12 underground shaft in June 2025 underpinned production growth. – Lead concentrate output: 9,530 t (+160%). – Zinc concentrate output: 21,739 t (+76%). – Copper concentrate output: 751 t (+306%). • Processing of 80,656 t of externally sourced ore generated RMB134.38 million in revenue. • Capital expenditure during the year totalled about RMB104.0 million, covering underground mine completion (RMB58.70 million), Phase 2 tailings pond (RMB39.60 million) and power line upgrades (RMB6.70 million). Exploration spending reached RMB7.50 million.

Balance Sheet and Cash Flow • Total assets expanded to RMB2.05 billion (2024: RMB1.45 billion). • Net assets grew 57.9% to RMB1.63 billion, bolstered by IPO proceeds of roughly RMB498.74 million. • Cash and cash equivalents jumped to RMB587.62 million (2024: RMB142.22 million). • Interest-bearing borrowings stood at RMB87.91 million; gearing ratio declined to 5.4% (2024: 6.3%).

Capital Actions and Dividends • IPO added 121.95 million new shares, bringing total issued shares to 487.81 million. • Board proposes a final cash dividend of RMB0.102 per share (about RMB50.00 million), subject to AGM approval—marking the first dividend since listing.

Post-Reporting Event On 30 March 2026, Zhihui Mining agreed to acquire a 60% stake in Xizang Dachuan Mining for RMB90.00 million, aiming to broaden its resource base. The transaction is pending completion.

Outlook Management intends to continue capacity upgrades, expand exploration, complete the Phase 2 tailings pond by 2027, and pursue selective acquisitions to diversify its non-ferrous metal portfolio amid supportive domestic market conditions.

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