Yunnan Chihong Zinc & Germanium (600497) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached ¥13.84 billion, up 30.78% year-over-year; net profit attributable to shareholders was ¥1.59 billion, up 70.58% year-over-year.

• Lead-zinc smelting output rose 13.67% year-over-year; gold and silver output surged due to new capacity coming online.

• Asset-liability ratio decreased to 25.93% at June 2026, reflecting improved financial structure.

• Major projects advanced, including capacity expansions, safety upgrades, and green initiatives.

Financial highlights

• Operating income: ¥13.84 billion, up 30.78% year-over-year; total profit: ¥1.86 billion, up 61.74%.

• Net cash flow from operations: ¥2.27 billion, up 5.38% year-over-year.

• Weighted average ROE: 9.41%, up from 5.82% a year earlier.

• Basic EPS: ¥0.3155, up 72.31% year-over-year.

• Non-recurring losses included a ¥145 million loss on asset disposals.

Outlook and guidance

• Management expects continued improvement in lead and zinc prices in H2 2026, with zinc prices likely to remain strong due to supply constraints.

• Ongoing focus on cost control, production efficiency, and green transformation.