Lygend Resources & Technology (2245) H1 2024 earnings summary

Executive summary

• H1 revenue rose 17.2% YoY to RMB10,878.0 million; profit attributable to owners increased 73.5% to RMB586.9 million, driven by higher production and trading volumes.

• HPL utilization exceeded 100%, ONC entered trial production, and HJF reached full capacity; no interim dividend was recommended.

Financial highlights

• Gross profit increased 16.6% YoY to RMB1,827.4 million; gross margin eased 0.1 percentage points to 16.8%.

• Profit before tax rose 56.1% to RMB993.3 million; profit for the period rose 46.6% to RMB970.4 million.

• Revenue growth reflected nickel products trading; lower other operating expenses also supported profit growth, partly offset by higher finance costs and a RMB142.1 million intangible-asset impairment.

Outlook and guidance

• Priorities include progressing ONC toward full production and completing KPS construction; all 12 KPS production lines are expected to be completed in 2026.

• Plans include expanding upstream nickel ore channels, pursuing high-quality resource investments, and developing products and processes for nickel metal, cobalt metal and HPAL tailings utilization.

• Further R&D focus areas include laterite nickel resource utilization, energy efficiency, emissions reduction, intelligent controls and project upgrades.