China Daye Non-Ferrous Metals Mining (661) H2 2024 earnings summary

Executive summary

• Revenue rose 29.18% year-over-year to RMB57.85 billion, driven by resumption of full production after environmental upgrades in 2023.

• Gross profit fell 10.70% to RMB1.62 billion due to lower smelting processing charges and tighter copper concentrate supply.

• Net profit plunged 95.26% to RMB9.6 million, mainly from asset disposals and narrowed margins.

• Production volumes of key products (copper, gold, silver, sulfuric acid, iron concentrate) increased significantly year-over-year.

• Major environmental rectification and intelligent mine upgrades completed, with strong focus on green and digital transformation.

Financial highlights

• Revenue: RMB57.85 billion (up 29.18% YoY); Gross profit: RMB1.62 billion (down 10.70% YoY).

• Net profit: RMB9.6 million (down 95.26% YoY); Basic EPS: RMB0.22 fen (vs. loss of RMB0.31 fen in 2023).

• Cost of sales increased 30.86% to RMB56.23 billion, reflecting higher production post-upgrade.

• Other income rose 36.56% to RMB62.8 million, mainly from government grants for environmental restoration.

• Net loss from other gains/losses of RMB98.6 million, mainly due to asset disposals linked to upgrades.

Outlook and guidance

• 2025 targets: 20,200 tonnes mined copper, 716,000 tonnes copper cathode, 2.64 million tonnes sulfuric acid, and continued growth in precious and rare metals.

• Focus on production safety, efficiency, digital transformation, and green initiatives.

• Planned investments in mine development, intelligent construction, and large-scale equipment renewal totaling over RMB100 million.

• Strategic emphasis on cost control, risk management, and internationalization to counter industry headwinds.