On September 30, Caixin Media (Reporter: Huang Lu) in the first half of this year, the overall performance of zinc prices showed an initial rise followed by a decline, with the center of gravity moving up. Zhuzhou Smelter Group (600961.SH) saw a slight decline in H1 revenue and net profit compared to the same period last year.

Today, Zhuzhou Smelter Group held the 2024 interim performance briefing. During the meeting, investors focused on the proportion of the company's own mines and ore mining business in total revenue. In response, Chairman Liu Langming stated that the company owns mining rights to the Shuikoushan lead-zinc mine and the Baifang copper mine, with three mines (Kangjiawan Mine and the lead-zinc mine are both under the Shuikoushan lead-zinc mine mining rights) and one beneficiation plant. The company's own mines mainly produce lead concentrate, zinc concentrate, gold concentrate, copper concentrate, gold-sulfur concentrate, and other mineral products.

He also mentioned that zinc concentrate, lead concentrate, and gold concentrate are for self-use, while only gold-sulfur concentrate and copper concentrate are sold externally through market-oriented methods, with external sales revenue accounting for a low proportion of total revenue.

The mid-year report shows that in the first half of 2024, the company achieved a total operating income of 9.063 billion yuan, an 8.10% year-on-year decrease; a net profit attributable to equity holders of 0.371 billion yuan, a 0.99% year-on-year decrease; a non-net profit of 0.315 billion yuan, a 1.30% year-on-year increase. The company stated that the year-on-year decrease in revenue was mainly due to some business structural adjustments leading to a reduction in operating income.

During the earnings conference, an investor asked: With the significant rise in gold and silver, why is the company's half-year report showing a relatively low gross margin for the gold business? Liu Langming explained: Mainly due to changes in raw material structure, an increase in the proportion of external purchase of gold-containing raw materials leading to a decrease in gross margin.

Where is the future growth point for the company? Liu Langming stated that with the smooth progress of the trial production work of the Shuikoushan Kangjiawan mine technological upgrade project, the production capacity will increase to 0.7 million tons per year, which will help further enhance resource self-sufficiency. Meanwhile, the company will continue to strengthen internal management, reinforce various cost reduction and efficiency enhancement measures; the company's zinc smelting total cost has decreased compared to the previous year; at the same time, the company's comprehensive recycling capabilities and production adaptability to raw materials continue to improve, effectively supporting cost competitiveness and enhancing the company's profitability.

Zhuzhou Smelter Group is backed by China Minmetals. As of the end of 2023, China Minmetals has 8 listed companies under its umbrella, including Metallurgical Corporation of China (601618.SH, 01618.HK) listed in both A and H shares, Minmetals Capital (600390.SH), Minmetals Development (600058.SH), China Tungsten and Hightech Materials (000657.SZ), Zhuzhou Smelter Group, and Minmetals Xinneng (688779.SH) listed on the mainland, as well as two Hong Kong-listed companies, Minmetals Resources (01208.HK) and Minmetals Land (00230.HK).

Caifinews reporters noticed that a few days ago, China Minmetals held its first collective earnings conference for its holding listed companies. At the meeting, the director of Zhuzhou Smelter Group revealed that the Shuikoushan Kangjiawan Mine's technological upgrade project had been fully put into trial production. The project achieved production in the first month of trial production. Currently, the entire system is running smoothly, and production output and various technical and economic indicators have reached or exceeded the design level.

In recent years, China Minmetals' holding listed companies have carried out multiple capital operations, such as Zhuzhou Smelter Group's restructuring and acquisition of the Shuikoushan project, MMG's acquisition of the Boseto Copper Mine project in Botswana, MMG's rights issue financing project, Changyuan Lithium Technology (now renamed as "Minmetals New Energy") convertible bonds issuance project, Minmetals Capital's preferred stock issuance project, as well as the ongoing restructuring of China Tungsten and Hightech Materials' Shizhuyuan tungsten mine project.

China Minmetals stated that one of the four measures to improve the quality of listed companies is to promote the optimization layout and functions of the listing platform. China Minmetals will actively promote the implementation of asset reorganization and financing for listed companies.