Xizang Zhihui Mining (2546) H1 2026 earnings summary

Executive summary

• H1 2026 revenue rose 75.9% YoY to RMB278.2m; profit attributable to owners increased 271.4% to RMB98.9m, supported by higher concentrate output and prices.

• Ore processing reached 217,170 tonnes, up 75.6% YoY; operations focused on own-mine ore, with no externally procured ore processed.

• Strategy focused on broadening the non-ferrous portfolio, AI-assisted exploration and recovering valuable minerals from tailings.

Financial highlights

• Revenue was RMB278.2m versus RMB158.1m YoY; zinc, lead and copper concentrates contributed RMB149.2m, RMB104.3m and RMB24.7m, respectively.

• Gross profit rose 183.9% to RMB146.5m; gross margin expanded to 52.7% from 32.6%, supported by higher prices and the absence of lower-margin externally sourced ore sales.

• Profit before tax was RMB113.6m versus RMB29.2m; profit for the period was RMB98.8m versus RMB26.6m, while attributable profit was RMB98.9m.

• Cost of sales increased 23.7% to RMB131.7m; G&A and other expenses rose 40.4% to RMB31.6m, while other income increased to RMB9.7m from RMB3.0m.

• Operating cash flow was RMB179.6m versus an outflow of RMB37.7m; net cash decreased RMB203.1m, with cash and cash equivalents ending at RMB375.5m.

Outlook and guidance

• Concentrate prices, particularly zinc, copper and silver, were expected to remain high in the foreseeable future.

• Pyrite concentrate sales were expected to contribute revenue later in 2026 after successful testing of upgraded beneficiation equipment.

• Further AI exploration investment aims to build a proprietary technology chain, improve efficiency and reduce field costs and ecological disturbance.

• Plans include pursuing mine acquisitions to broaden the non-ferrous portfolio and diversify risk.