en.Wedoany.com Reported - On the evening of August 23, Zhaojin Mining Industry Co., Ltd. disclosed its interim results for the six months ended June 30, 2026. In the first half of 2026, the company achieved operating revenue of RMB 9.022 billion, up 29.38% year-on-year; net profit of RMB 2.105 billion, up 18.5% year-on-year; and profit attributable to shareholders of the parent company of RMB 1.578 billion, up 9.61% year-on-year.
Domestic Production Under Pressure
Overseas Capacity Becomes Key Growth Driver
In the first half of 2026, due to factors such as strict safety inspections across the national mining industry and production suspensions for rectification at certain subsidiary mines, the affected mines remained in a state of suspension for rectification, with capacity release temporarily hindered. As a result, Zhaojin Mining's gold production saw a phased decline, with total gold output of approximately 12.53 tonnes, down 12.33% year-on-year. Among this, mined gold was approximately 8 tonnes, down 21.87% year-on-year; and smelting and processing gold was approximately 4.53 tonnes, up 11.77% year-on-year. As of June 30, the affected mines remained in suspension, putting pressure on production and operations.
Facing the challenge of declining production, Zhaojin Mining fully implemented a differentiated "one mine, one policy" plan to stabilize and restore production, making every effort to revitalize existing capacity, repair production capacity, and bridge output gaps. In particular, the overseas segment performed strongly, becoming an important buffer against domestic capacity contraction. In the first half of the year, overseas gold production grew by 33.44% year-on-year. Among this, the Abuja Gold Mine continued to demonstrate its capacity-supporting role through optimized production and operation models, streamlined production processes, and improved mining and beneficiation efficiency.
High Gold Prices Provide Support
Financial Metrics Continue to Improve
In the first half of the year, gold market prices remained at elevated levels overall, and the strong performance of gold prices laid a solid foundation for Zhaojin Mining's revenue and profit growth.
In terms of cost control, Zhaojin Mining's domestic comprehensive cost per gram of gold was approximately RMB 322.97 per gram, up 49.39% year-on-year; the overseas comprehensive cost per gram of gold was approximately USD 1,838.04 per ounce, down 6.2% year-on-year. Benefiting from significant revenue growth and effective overseas cost management, Zhaojin Mining's gross margin rose from 43.74% in the same period last year to 48.18%.
At the same time, the company continued to optimize its debt structure, with financial costs of approximately RMB 201 million in the first half of the year, down 20.45% year-on-year. As of June 30, Zhaojin Mining's cash and cash equivalents stood at approximately RMB 4.609 billion, up 152.55% from the end of the previous year; total assets were approximately RMB 61.043 billion, up 6.56% from the end of the previous year, with the financial fundamentals continuing to improve.
Major Breakthrough in Mineral Exploration
Resource Footprint Steadily Expanding
In the first half of the year, Zhaojin Mining continued to increase investment in mineral resource exploration, with geological exploration investment of RMB 92 million, adding 28.46 tonnes of new gold metal content, steadily improving the quality and scale of resource reserves.
In terms of exploration breakthroughs, drilling in the northern section of the Dayingezhuang mining area discovered thick ore bodies, achieving a major regional exploration breakthrough; exploration in target areas such as Jinwang Mining and Jinzhi Mining yielded notable results. In terms of external resource expansion, Zhaojin Mining adhered to an integrated domestic and international resource layout strategy, successfully completing the acquisition of exploration rights in the periphery of Zhaojin Baiyun domestically, and winning the bid for the Wasunjia exploration right in Zhaoyuan City, Shandong Province, continuously enhancing the resource reserve capacity and sustainable development momentum of core mining areas.
Meanwhile, the construction of key domestic projects progressed steadily, with capacity replacement projects being implemented in an orderly manner. A batch of key overseas core projects, including the expansion of Oderan Mining, advanced as planned, continuously consolidating Zhaojin Mining's medium- and long-term production replacement capacity and ensuring the sustainable development of overall operations.
Strictly Upholding Safety Bottom Line in H2
Going All Out to Recover Production and Bridge Output Gaps
Looking ahead to the second half of the year, Zhaojin Mining will closely adhere to the overall work tone of "prioritizing safety, safeguarding performance, and overcoming difficulties," going all out to recover production and bridge output gaps, minimizing shortfalls against annual targets, stabilizing the core business, and striving to achieve the best possible full-year operating results.
First, strictly uphold the safety bottom line to ensure compliant and stable operations. Conduct an in-depth review of safety shortcomings and accident lessons from the first half of the year, vigorously advance hidden danger investigation and rectification as well as special safety production governance, rebuild the four major systems, and comprehensively enhance the company's safety management capabilities and standardized operation levels.
Second, accelerate the resumption of production and operations, and make every effort to narrow output gaps. Optimize production organization at operating mines, scientifically allocate production resources, and maximize the release of existing capacity while reducing production shortfalls. Accelerate the construction of compliance projects at key mines such as the Dayingezhuang Gold Mine, advance the completion, acceptance, and commissioning of deep-level replacement projects to boost efficiency; solidify the expansion of mining rights, capacity increases, and license renewals at mines such as Fengning Jinlong; simultaneously strengthen overseas capacity growth, steadily advancing the technical renovation and capacity expansion of the Abuja Gold Mine and the construction of mining and beneficiation projects at Oderan Mining.
Third, broaden profit-generating channels to stabilize overall profitability. Tap into the value of by-products from mining, revitalize capacity for by-products such as silver, sulfuric acid, and iron powder, and cultivate new revenue growth points through refined operations to offset the revenue gap caused by declining production. Precisely assess gold market price trends, strictly control costs across the entire production chain, and enhance comprehensive profitability.
Fourth, tackle project construction to build momentum for long-term development. Accelerate key projects at Ruihai Mining, build industry-benchmark mines to high standards, and expedite the realization of new capacity through new projects and new infrastructure; continue to expand the high-quality resource footprint, accelerate the closure of high-quality mining project acquisitions, and continuously expand high-grade gold resource reserves; deepen technological innovation to empower industrial upgrading, solidly advance the implementation of 22 key scientific research and technical renovation projects, and iteratively upgrade core production processes such as tailings re-processing, waste rock sorting, and environmentally friendly gold extraction to drive quality and efficiency improvements.
