Zangge Mining Reports H1 Net Profit of CNY 1.297 Billion, Plans Interim Dividend

Source: Securities Daily, Author: Li Liping

Zangge Mining, August 10, 2024, 01:31, Qinghai

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On the evening of August 9, 2024, Zangge Mining released its 2024 half-year performance report. In the first half of the year, the company achieved revenue of CNY 1.762 billion and net profit attributable to shareholders of CNY 1.297 billion. The company plans to distribute an interim dividend of CNY 2.6 per 10 shares (inclusive of tax) to all shareholders.

Li Ruixue, Secretary of the Board of Zangge Mining, told Securities Daily that the decline in sales prices for potassium chloride and lithium carbonate products affected revenue and profit in H1 2024. To further enhance investor returns, the company will implement an interim dividend, marking the third consecutive year of interim dividends since 2022. Additionally, to safeguard shareholder interests and promote long-term, stable, and sustainable development, the company plans to repurchase part of its shares.

Business Performance by Segment

Potassium Chloride: Revenue of CNY 1,122.475 million; production and sales reached 522,800 tons and 540,100 tons, respectively.

Lithium Carbonate: Revenue of CNY 633.984 million; production and sales reached 5,809 tons and 7,630 tons, respectively.

Both potassium chloride and lithium carbonate production and sales exceeded 50% of the full-year target.

In H1 2024, the company realized CNY 855 million in investment income through its stake in Jilong Copper, up 46.10% year-on-year.

Quarterly Highlights

Despite significant commodity price fluctuations, in Q2 2024, Zangge Mining recorded revenue of CNY 1.147 billion, up 86.76% quarter-on-quarter, and net profit attributable to shareholders of CNY 768 million, up 45.05% quarter-on-quarter. Li Ruixue attributed this growth to a rebound in potassium chloride prices during Q2.

The company explained that Q1 price declines were mainly due to short-term supply-demand imbalances, with port traders stockpiling, which further suppressed demand. Since April, pre-planting demand for compound fertilizers was released, and port arrivals decreased, leading to supply tightening and a simultaneous rebound in potassium chloride prices. On July 9, 2024, the annual potassium fertilizer contract price was finalized at USD 273/ton CFR, down USD 34/ton from last year, establishing a price floor for the market and supporting demand during the autumn sowing season.

Share Repurchase Plan

According to the August 9 announcement, the company plans to repurchase shares within 12 months at a price not exceeding CNY 35.90 per share. The total repurchase amount will range from CNY 150 million to CNY 300 million, covering 4.1783 million to 8.3565 million shares. All repurchased shares will be canceled to reduce registered capital.

Editor: Yuan Chengying