Jinduicheng Molybdenum (601958) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 6,593.25 million, up 19.66% year-over-year, reflecting strong market demand and effective business strategy adjustments.

• Net profit attributable to shareholders was RMB 1,501.60 million, a 0.95% increase year-over-year.

• Despite a 23.19% drop in international molybdenum prices and a 16.82% drop in domestic prices, the company achieved stable growth through production optimization and cost control.

• Cash dividend of RMB 1.29 billion was distributed for 2023, but no interim dividend or capital increase plan for H1 2024.

• The company maintained a strong position in the global molybdenum market, with a 12% global share and robust R&D and supply chain capabilities.

Financial highlights

• Operating income: RMB 6,593.25 million, up 19.66% year-over-year.

• Net profit attributable to shareholders: RMB 1,501.60 million, up 0.95% year-over-year.

• Operating profit: RMB 1,988.24 million, up 1.30% year-over-year.

• Operating cash flow: RMB 581 million, down 19.88% year-over-year.

• Total assets: RMB 19,367.79 million, up 5.90% from year-end 2023.

Outlook and guidance

• The company aims to double molybdenum concentrate capacity to 100,000 tons within five years, focusing on high-end, green, and technology-driven growth.

• Plans to enhance supply chain resilience and develop new competitive advantages amid global market volatility.

• Market demand in the banking sector remains strong, supporting continued business growth.

• Ongoing focus on market opportunities, efficiency improvements, and cost management.