Zhaojin Mining Industry Company Limited reported interim results for the six months ended 30 June 2026, highlighting robust top-line expansion driven by stronger gold prices despite a double-digit fall in mined output.

Revenue and Earnings • Revenue rose 29.38% year on year (YoY) to RMB 9.02 billion, primarily reflecting a higher average realised gold price. • Net profit increased 18.50% YoY to RMB 2.11 billion. Profit attributable to shareholders reached RMB 1.58 billion, up 9.61% YoY. • Basic and diluted earnings per share were RMB 0.42, a 10.75% rise. • The board did not declare an interim dividend.

Margins and Costs • Gross profit expanded 42.51% to RMB 4.35 billion; gross margin improved to 48.18% from 43.74% a year earlier. • Cost of sales climbed 19.18% to RMB 4.67 billion, reflecting higher production and procurement costs. • Domestic integrated gold cost surged 49.39% to RMB 322.97 per gram due to lower volumes, while overseas integrated cost per ounce fell 6.20% to USD 1,838.04 thanks to efficiency gains. • Finance costs declined 20.45% to RMB 201.02 million amid lower borrowing rates. • Other income and gains dropped 87.04% to RMB 146.91 million, mainly from reduced fair-value gains on financial instruments.

Production • Total gold production slipped 12.33% YoY to 12,526 kg. Output from self-owned mines fell 21.87% to 7,997 kg, affected by temporary mine suspensions and tighter safety inspections. Smelting and tolling output, however, rose 11.77% to 4,529 kg. • Segment revenue breakdown: Gold operations contributed RMB 7.81 billion, copper RMB 0.19 billion, and other businesses RMB 1.02 billion.

Balance Sheet and Liquidity • Total assets stood at RMB 61.04 billion, up 6.56% from end-2025; net assets reached RMB 30.55 billion, a 4.98% increase. • Cash and cash equivalents jumped 152.55% to RMB 4.61 billion, reflecting funds set aside for upcoming debt maturities. • Interest-bearing bank and other borrowings rose to RMB 12.54 billion; corporate bonds totalled RMB 6.00 billion. • Net gearing eased to 35.9% from 38.4% at end-2025.

Operational Focus Management cited ongoing mine safety inspections and two incidents that led to production halts as key challenges. The company is prioritising: 1. Accelerating the safe resumption of suspended mines and expanding compliant capacity. 2. Advancing overseas growth, with Abujar Gold Mine output up 33.44% YoY and expansion projects at LION Ltd. progressing. 3. Intensifying exploration, adding 28.46 tonnes of gold resources during the period. 4. Continuing cost control, technological upgrades and by-product monetisation to support profitability.

Corporate Actions and Governance • Shareholders approved a RMB 0.10 final dividend for FY 2025; no interim dividend proposed for 1H 2026. • The company redeemed three tranches of technological innovation bonds and one tranche of medium-term notes in early 2026, and issued RMB 2 billion of new tech-innovation bonds in July. • Leadership changes included the appointment of Mr Wang Leyi as chairman and executive director in May, and Mr Li Guanghui’s elevation to president and authorised representative in August. • Zhaojin Mining confirmed compliance with Hong Kong’s Corporate Governance Code and maintained the required public float throughout the period.

Outlook The company aims to recover lost production, enhance safety standards, accelerate key project development and strengthen cost controls to mitigate the impact of domestic mine suspensions on full-year performance.