Net Profit Up 39%, Cash Dividend of RMB 1.569 Billion! Zangge Mining Confident in Mid-Year Dividend

This article is sourced from Panorama Network, September 3.

The content does not constitute investment advice.

All disclosed information is subject to the company’s official announcements. Investors act at their own risk.

On August 1, 2025, Zangge Mining Co., Ltd. (000408.SZ) released its 2025 Interim Report. During the reporting period, the company achieved operating revenue of RMB 16.78 billion and a net profit attributable to shareholders of RMB 18.00 billion, a year-on-year increase of 38.80%. Net profit excluding non-recurring gains and losses reached RMB 18.08 billion, up 41.55% year-on-year. Basic earnings per share were RMB 1.1526, an increase of 39.57%.

Notably, net cash flows from operating activities reached RMB 8.34 billion, up 137.19% year-on-year, indicating continuous improvement in operating quality and healthy cash flow.

The growth in performance was mainly driven by the coordinated development of the company’s three core businesses: potassium chloride, lithium carbonate, and copper.

As China’s second-largest potassium chloride producer, the company leveraged mining rights covering 724.35 km² in Qinghai Chaerhan Salt Lake. In the first half of the year, potash production reached 485,200 tons and sales reached 535,900 tons, accomplishing 48.52% and 56.41% of the annual plan, respectively. Amid tight international potash supply and rising prices, the company’s average selling price of potassium chloride increased by 25.57% year-on-year. Meanwhile, process optimization reduced unit sales cost by 7.36%, driving the business gross margin to 61.84%, an increase of 13.56 percentage points compared to the same period last year.

Regarding lithium carbonate, despite price pressures from industry supply-demand adjustments, the company produced 5,170 tons and sold 4,470 tons, improving product quality and market competitiveness through continuous technological optimization.

Through its stake in Julong Copper, the company obtained significant investment income. During the reporting period, Julong Copper produced 92,800 tons of copper, sold 92,700 tons, achieved operating revenue of RMB 7.562 billion, and net profit of RMB 4.166 billion. Based on a 30.78% shareholding, Zangge Mining recognized investment income of RMB 1.264 billion, up 47.82% year-on-year, accounting for 70.22% of net profit attributable to shareholders. The Phase II expansion project of Julong Copper is progressing as planned and is expected to be completed and put into operation by the end of 2025, further enhancing company earnings.

In the first half of 2025, R&D investment increased by 198.57%. By establishing a three-tier R&D management system (President—Chief Engineer—R&D Department), the company continuously improved its technology innovation mechanism. In salt-lake lithium extraction, breakthroughs in ultra-low concentration brine technology allowed the production of battery-grade lithium carbonate with 99.6% purity. Meanwhile, refined cost control and innovative tail saltwater leaching processes effectively reduced production costs.

On August 31, 2025, Zangge Mining announced its 2025 Interim Dividend Implementation Plan, deciding to distribute cash dividends of RMB 10 per 10 shares (inclusive of tax) based on a total share capital of 1,568,914,800 shares, totaling RMB 1.569 billion, with a cash dividend ratio of 87.15%, reflecting the company’s emphasis on shareholder returns and solid operational strength.

With the Phase II project of Julong Copper to be commissioned by year-end, the Mamiko Salt Lake project entering the construction phase, and the Laos potash project progressing steadily, Zangge Mining, supported by Zijin Mining, is accelerating toward becoming an internationally leading mining group.