Executive Summary
Zhaojin Mining reported a resilient QQ3 2024 with a revenue of 3.4617 billion CNY, marking a 17.8% year-over-year increase and a 30.8% quarter-over-quarter increase. The company posted a solid gross profit of 1.2662 billion CNY and a gross margin of 36.58%, supported by a robust operating margin of 23.66% and an EBITDA of 1.18 billion CNY. Net income reached 449.0 million CNY, up 96.5% YoY and 35.5% QoQ, with diluted EPS of 0.11 CNY and basic EPS of 0.15 CNY. Operating cash flow stood at 1.3982 billion CNY for the quarter, yielding a free cash flow of 892.6 million CNY after capex of 505.5 million CNY. These results reflect improved operating leverage as Q3 followed a weak Q2, with better cost control and favorable input dynamics contributing to margin expansion. The company also undertook shareholder-friendly actions, including a cash dividend-related outflow and a share repurchase activity of 500 million CNY, highlighting capital allocation discipline amidst a debt-heavy balance sheet.
Key Performance Indicators
QoQ: 173.72% | YoY:124.55%
Key Insights
Revenue: 3,461,738,500 CNY (YoY +17.8%; QoQ +30.8%)
Gross Profit: 1,266,238,000 CNY (YoY +8.3%; QoQ +10.8%)
Gross Margin: 36.58%
Operating Income: 818,873,500 CNY (YoY +5.6%; QoQ +317.9%)
Net Income: 449,003,000 CNY (YoY +96.5%; QoQ +35.5%)
EPS (Basic): 0.15 CNY; EPS (Diluted): 0.11 CNY (YoY +124.6%; QoQ +173.7%)
EBITDA: 1,179,508,500 CNY; EBITDA Margin: 34.07%
Net Profit Margin: 12.97%
Operating Cash Flow: 1,398,121,500 CNY; Free Cash Flow: 892,583,500 CNY
Total Assets: 53,567,945,000 CNY; Tota...
Financial Highlights
Revenue: 3,461,738,500 CNY (YoY +17.8%; QoQ +30.8%)
Gross Profit: 1,266,238,000 CNY (YoY +8.3%; QoQ +10.8%)
Gross Margin: 36.58%
Operating Income: 818,873,500 CNY (YoY +5.6%; QoQ +317.9%)
Net Income: 449,003,000 CNY (YoY +96.5%; QoQ +35.5%)
EPS (Basic): 0.15 CNY; EPS (Diluted): 0.11 CNY (YoY +124.6%; QoQ +173.7%)
EBITDA: 1,179,508,500 CNY; EBITDA Margin: 34.07%
Net Profit Margin: 12.97%
Operating Cash Flow: 1,398,121,500 CNY; Free Cash Flow: 892,583,500 CNY
Total Assets: 53,567,945,000 CNY; Total Liabilities: 28,375,654,000 CNY; Total Equity: 21,183,602,000 CNY
Net Debt: 18,009,349,000 CNY; Debt: 20,039,174,000 CNY
Current Ratio: 0.962; Quick Ratio: 0.530; Cash Ratio: 0.141
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
3.46B |
17.84% |
30.82% |
| Gross Profit |
1.27B |
8.28% |
10.82% |
| Operating Income |
818.87M |
5.60% |
317.88% |
| Net Income |
449.00M |
96.49% |
35.48% |
| EPS |
0.15 |
124.55% |
173.72% |
Key Financial Ratios
operatingProfitMargin
23.7%
Management Commentary
Transcript not provided for QQ3 2024 in the supplied data. Management quotes and themes could not be incorporated from an earnings call. The analysis below relies on the published financials and publicly available company communications rather than verbatim call transcripts.
Forward Guidance
No explicit management guidance for the near-term QQ4 2024 guidance was included in the provided data. Given the operating environment for gold miners, several qualitative factors are relevant: (1) gold price volatility and its impact on margins; (2) mine sequencing, ore grade stability, and sustaining capex; (3) cost discipline in energy, labor, and processing; (4) potential deleveraging or opportunistic balance sheet management given a net debt position around 18.0 billion CNY. Investors should monitor potential normalization of input costs, any update on production guidance, and the company’s ability to sustain free cash flow generation to support deleveraging or strategic capex. Based on current momentum, management’s track record on cost control and the resilience of gold prices, a cautious-to-mittel positive stance is warranted, with emphasis on debt reduction, liquidity management, and potential capital returns if cash flow remains strong.