Zangge Mining Company (000408) Q3 2025 earnings summary

Executive summary

• Achieved revenue of ¥2.40 billion in Q3 2025, up 28.71% year-over-year; net profit attributable to shareholders reached ¥950.60 million, up 66.49% year-over-year.

• Year-to-date revenue was ¥7.23 billion, up 3.35% year-over-year; net profit attributable to shareholders was ¥2.75 billion, up 47.26% year-over-year.

• Major product potassium chloride saw sales volume exceed production due to release of national reserves; lithium carbonate sales and production plans were adjusted downward due to temporary suspension and later resumption.

Financial highlights

• Basic and diluted EPS for Q3 were ¥0.6060, up 66.71% year-over-year; year-to-date EPS was ¥1.7566, up 47.69%.

• Operating cash flow for the period was ¥1.34 billion, up 118.88% year-over-year.

• Gross margin for potassium chloride reached 63.46%, up 20.78 percentage points year-over-year; lithium carbonate margin fell to 31.20%, down 18.42 percentage points.

• Investment income from associate Julong Copper was ¥1.95 billion, accounting for 70.89% of net profit attributable to shareholders.

Outlook and guidance

• Lithium carbonate annual production and sales targets were revised down to 8,510 tons due to temporary suspension and resumption of operations.

• Measures to offset lithium carbonate shortfall include maximizing potassium chloride output and sales, dynamic sales strategies, and cost control.