Sinomine Resource Group (002738) Q2 2026 earnings summary

Executive summary

• Achieved revenue of ¥3.66 billion in H1 2026, up 12.03% year-over-year, with net profit attributable to shareholders of ¥1.11 billion, surging 1,146.81% year-over-year, driven by lithium salt price recovery and strong segment performance.

• Lithium new energy materials and rare light metals (cesium, rubidium) accounted for 80.66% and 13.93% of revenue, respectively, with lithium segment revenue up 125.84% year-over-year.

• Gross margin reached 52.90%, with lithium segment at 52.19% and rare light metals at 70.19%.

• Major projects advanced, including Zimbabwe 100,000 tpa lithium sulfate project, Kitumba copper mine, and Tsumeb multi-metal recovery.

Financial highlights

• Operating income: ¥3.66 billion, up 12.03% year-over-year.

• Net profit attributable to shareholders: ¥1.11 billion, up 1,146.81% year-over-year.

• Basic and diluted EPS: ¥1.5402, up 1,147.13% year-over-year.

• Operating cash flow: -¥226.86 million, improved 35.57% year-over-year.

• Total assets: ¥20.97 billion, up 15.19% from year-end 2025.

• R&D investment: ¥130.38 million, up 196.67% year-over-year.

Outlook and guidance

• Lithium salt market expected to remain robust, with new capacity coming online and further cost optimization.

• Zimbabwe lithium sulfate project to be operational by mid-2027, enhancing cost competitiveness.

• Kitumba copper mine and Tsumeb multi-metal projects to drive future growth.