Jiaxin International Resources Investment (3858) H2 2025 earnings summary

Executive summary

• Achieved a milestone in 2025 with the commencement of Phase I commercial production at the Boguty tungsten mine in Kazakhstan, transitioning from project construction to production and value creation.

• Successfully listed on both the Hong Kong Stock Exchange and Astana International Exchange, raising HK$1,261.3 million in net proceeds from the IPO.

• Reported first full year of commercial operations, with significant revenue and profit growth driven by strong tungsten prices and operational ramp-up.

Financial highlights

• Revenue reached HK$1,063.0 million in 2025, compared to nil in the previous year, following the start of commercial production in April 2025.

• Gross profit was HK$520.0 million, with a gross profit margin of 48.9%.

• Net profit for the year was HK$314.4 million, reversing a net loss of HK$176.5 million in 2024.

• Administrative expenses increased to HK$111.1 million, mainly due to higher employee costs and listing expenses.

• Net cash generated from operating activities was HK$510.4 million; cash and cash equivalents at year-end were HK$1,024.5 million.

• Borrowings decreased by 23.5% to HK$1,265.5 million.

• Gearing ratio dropped sharply from 100.8% to 13.3% due to increased equity and reduced debt.

Outlook and guidance

• Plans to increase annual mining and processing capacity to 4.95 Mt by 2027 with integration of ore sorting technology.

• Short-term focus (2026-2028) on ramping up Phase I to full capacity, advancing downstream APT projects, and optimizing costs.

• Medium-term (2029-2032) includes Phase II expansion, doubling product value added, and global resource acquisitions.

• Long-term goal to become a leading global player in the tungsten industry chain, with continued investment in technology and ESG.