Sinomine Resource Group (002738) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥2.42 billion, down 32.76% year-over-year due to lithium material price declines.

• Net profit attributable to shareholders was ¥473 million, a 68.52% decrease year-over-year.

• Major projects in Zimbabwe and Canada reached production, significantly increasing self-supplied lithium ore.

• The company completed a record cash dividend payout of ¥721.56 million in May 2024.

Financial highlights

• Operating income: ¥2.42 billion, down 32.76% year-over-year.

• Net profit attributable to shareholders: ¥473 million, down 68.52% year-over-year.

• Basic EPS: ¥0.6556, down 70.34% year-over-year.

• Operating cash flow: -¥107 million, compared to ¥2.02 billion in H1 2023.

• Gross margin for lithium new energy materials: 35.55%.

Outlook and guidance

• The company will continue to expand global resource acquisition and develop new mining projects.

• Focus remains on cost reduction, efficiency improvement, and product structure optimization to mitigate market risks.

• No interim dividend, bonus shares, or capital increase from reserves planned for H1 2024.