Zhaojin Mining Industry Company (1818) Q4 2023 earnings summary

Executive summary

• FY2023 revenue rose 6.82% YoY to RMB8.424bn; net profit increased 49.67% to RMB838.418m, supported by higher gold prices and increased self-produced gold sales.

• Profit attributable to owners rose 70.77% to RMB686.430m; basic and diluted EPS doubled to RMB0.14. Proposed final dividend remained RMB0.04 per share, subject to shareholder approval.

Financial highlights

• Gross profit increased 26.90% to RMB3.370bn; gross margin rose to 40.01% from 33.68%. Cost of sales declined 3.37% to RMB5.053bn, mainly from lower buyout gold sales.

• Profit before tax was RMB1.127bn versus RMB739.205m; income tax expense rose to RMB288.107m from RMB179.019m.

• Administrative and other operating expenses rose 11.44% to RMB2.133bn, mainly due to impairment provisions for property, plant and equipment and other intangible assets.

• Finance costs increased 13.97% to RMB607.694m, mainly reflecting a higher average financing amount; other income and gains decreased 6.88% to RMB526.967m.

Outlook and guidance

• 2024 priorities include increasing output and capacity, advancing mine projects, expanding exploration and reserves, controlling costs, optimizing debt structure and reducing financing costs.

• Key projects include Ruihai Mining's 12,000-tonne-per-day mining and processing project, Dayingezhuang's 8,000-tonne-per-day expansion and phase two of Jintingling's Caogoutou Mining Area.

• The outlook anticipates gold-market support from expected US rate cuts and continued global central-bank demand; no quantified financial or production guidance was stated.