Zhaojin Mining Industry (1818.HK) Q4 2024 Earnings Report

Zhaojin Mining Industry Company Limited delivered a strong QQ4 2024 performance, underpinned by a sharp rise in revenue and a healthy gross margin. Revenue reached CNY 3.4617 billion, up 69.8% year over year, with gross profit of CNY 1.2662 billion and a gross margin of 36.58%. Operating income rose to CNY 818.9 million, yielding an operating margin of 23.66%, and net income totaled CNY 449.0 million, with trailing twelve months earnings per share (EPS) of 0.15 (non-diluted) and 0.11 (diluted). The quarter also showcased meaningful cash generation: operating cash flow of CNY 1.3982 billion and free cash flow of CNY 892.6 million. A constructive balance sheet position accompanied by robust liquidity supported the business, with total assets of about CNY 53.57 billion and total equity of roughly CNY 21.18 billion. However, leverage remains a material consideration: total debt stood at approximately CNY 20.05 billion, and net debt was about CNY 18.02 billion, yielding a debt-to-capitalization of 0.486 and a long-term debt-to-capitalization ratio of 0.329. The company also returned capital to shareholders via a dividend of CNY 152.4 million and a share repurchase of CNY 500 million, which modestly reduced shares outstanding. Absent explicit forward guidance, the QQ4 outcome underscores the resilience of Zhaojin’s core gold operations, but investors should monitor gold price dynamics, ore grades, and working-capital intensity as key drivers of ongoing profitability and leverage management.