CNMC's 2026 interim results, released on the evening of August 21st, showcase a comprehensive beat across all major financial metrics. Leveraging its fully integrated copper-cobalt mining, beneficiation, and smelting value chain, alongside high-quality overseas resource reserves, the company capitalized on elevated copper and sulphuric acid prices during the first half of the year to deliver robust growth in revenue, net profit, and operating cash flow.

These record-breaking interim results underscore the company's operational resilience and growth potential, even amid industry cyclical volatility.

Core Earnings Soar, Profit Growth Leads the Pack

The global copper market maintained a high level of prosperity throughout the first half of 2026. Industry data shows that the average spot copper price in China surged 25.69% year-on-year, while LME copper traded in a high range of $11,700-$14,530 per tonne. This high-price environment created substantial profit margins for mining and smelting enterprises. Concurrently, a persistent global shortage of copper concentrate has optimized the industry's supply-demand dynamics, providing a solid fundamental backdrop for earnings growth.

Capitalizing on these favorable industry tailwinds, CHINFMINING delivered exceptional operational results. The company reported revenue of $2.261 billion, up 29.1% year-on-year, and net profit of $623 million, a substantial 67.7% increase. Profit attributable to owners of the company reached $434 million, up 64.7% year-on-year. Notably, profit growth significantly outpaced revenue growth, demonstrating a marked improvement in earnings quality. Basic earnings per share rose 64.6% year-on-year to HK$0.87, further enhancing per-share investment value.

The significant improvement in profitability is primarily attributed to a sharp expansion in product gross margins. The company's overall gross margin climbed to 42.4% in the first half, up from 32.6% in the same period last year. Specifically, the gross margin for sulphuric acid reached an impressive 81.6%, up 18.8 percentage points year-on-year, while the cathode copper margin increased by 12.8 percentage points to 58.6%. This broad-based expansion in core product margins served as the primary engine for the company's earnings surge.

Solid Financial Health and Strong Cash Generation

Beyond the impressive profit figures, CHINFMINING's financial structure continues to strengthen, with asset quality and cash flow levels hitting new highs, further enhancing its operational stability. As of the end of June 2026, total assets reached $5.754 billion, a 19.8% increase from the end of 2025. The company's cash position is exceptionally robust, with cash and cash equivalents totaling $2.017 billion, an increase of $540 million from the start of the year. This ample liquidity provides a solid foundation for project investment, technological upgrades, and shareholder returns.

The company's cash-generating ability nearly doubled, with net cash from operating activities hitting $1.043 billion in the first half of 2026, an impressive 98.3% increase from $526 million in the corresponding period last year. This surge in operational cash flow strongly validates the authenticity and sustainability of the company's earnings. Additionally, CHINFMINING has optimized its inventory management, with closing inventory of $661.6 million, down $75.5 million from the end of 2025, indicating improved turnover efficiency and reduced capital occupation.

Full Value Chain Synergy and Product Mix Optimization

As a leading integrated enterprise focused on copper-cobalt resource development, smelting, and sales, CHINFMINING operates two core business segments: hydrometallurgy and pyrometallurgy. Its operations span the entire value chain from mining and beneficiation to smelting, offering significant advantages in supply chain integration and resource self-sufficiency, which effectively mitigate risks associated with industry cyclicality.

In the first half of 2026, both core segments delivered increased revenue and profitability. The pyrometallurgy segment generated external sales revenue of $1.394 billion, accounting for 61.7% of total revenue, while the hydrometallurgy segment contributed $867 million, representing 38.3%. The complementary nature of these two segments reinforces the company's operational fundamentals.

On the product front, sales of core products, cathode copper and sulphuric acid, grew substantially, with revenue up 39.2% and 48.1% year-on-year, respectively. The company also added sales of high-value-added products such as cobalt hydroxide and bismuth oxychloride, enriching its product portfolio and optimizing its earnings structure. From a market perspective, CHINFMINING's products are now sold across multiple global regions, including Singapore, Africa, and Hong Kong. This diversified market presence effectively disperses regional risks and ensures stable product sales, providing market support for sustained earnings growth.

Accelerated Project Development and Attractive Long-Term Value

Looking toward long-term growth, CHINFMINING continues to increase capital investment in key projects, including mine expansion, technological upgrades, and environmental improvements. The company's total capital expenditure for the first half of 2026 was $123 million, primarily directed toward mine development, smelting equipment upgrades, and environmental protection initiatives.

Key projects are progressing steadily, including the Luanshya new mine shallow and deep ore body development and the Southeast Ore Body expansion phase II at CNMC Luanshya. Additionally, the company is advancing technological renovation projects for smelting flue gas environmental treatment and copper-acid system optimization to improve production processes, reduce costs, and enhance industrial competitiveness. Future projects, such as the MSESA ore body development at Deziwa and the construction of the Samba copper mine beneficiation project at Chambishi, are on schedule for commissioning between 2028 and 2029, reserving ample momentum for earnings growth over the next two to three years.

Backed by solid operational performance and abundant cash flow, CHINFMINING continues to uphold its value-return philosophy. In the first half of 2026, the company paid its first interim dividend of 1.1113 US cents per share, demonstrating its strong profitability and commitment to rewarding shareholders. This stable dividend policy, combined with sustained earnings growth and ample expansion prospects, positions the company with outstanding long-term investment value within the non-ferrous metals sector.

According to industry forecasts, the global copper concentrate supply contraction is expected to intensify in the second half of 2026, while copper demand from emerging sectors such as photovoltaics, energy storage, and new energy vehicles continues to grow strongly. The tight supply-demand balance in the copper market is expected to persist, with copper prices likely to maintain a high-level consolidation pattern. As a leading overseas copper resource player, CHINFMINING is well-positioned to continue capturing industry cycle dividends, leveraging its full value chain advantages, continuously evolving capacity layout, and robust financial position to achieve sustained and stable earnings growth while continuously unlocking corporate value.