Yunnan Chihong Zinc & Germanium (600497) H2 2024 earnings summary

Executive summary

• Revenue for 2024 was ¥18.80 billion, down 14.8% year-over-year, with net profit attributable to shareholders at ¥1.29 billion, a 14.2% decrease from 2023.

• Operating cash flow was ¥2.37 billion, down 34.4% year-over-year, mainly due to lower self-supplied raw materials and higher procurement costs.

• The company maintained a strong focus on project construction, technological innovation, and ESG, with 12 key projects advanced and significant green initiatives.

• Cash dividend of ¥1.3 per 10 shares proposed, with a payout ratio of 51.2% of net profit.

Financial highlights

• Gross margin for the main business was 16.15%, up 0.34 percentage points year-over-year.

• Total assets at year-end were ¥26.37 billion, down 5.34% from the previous year.

• Weighted average ROE was 7.79%, down 1.36 percentage points year-over-year.

• Basic and diluted EPS were ¥0.2539, down 14.24% year-over-year.

• R&D investment reached ¥863 million, 4.59% of revenue.

Outlook and guidance

• The company aims to further optimize production, reduce costs, and accelerate innovation in 2025.

• Focus remains on resource expansion, project execution, and green transformation.

• Dividend policy targets at least 30% payout of distributable profit annually.