Zhaojin Mining Industry (1818.HK) Q1 2025 Earnings Report

Zhaojin Mining reported QQ1 2025 results with a robust top-line and notable margin expansion. Revenue totaled 3,041,060,802 CNY, up 53.5% year over year, while quarter-over-quarter revenue declined 12.15% to 3.04B CNY from 3.46B CNY in Q4 2024. The quarter delivered a record gross margin of 50.34% (vs. 36.58% in Q4 2024), supported by strong price realization and favorable product mix. EBITDA stood at 1,385,161,810 CNY, producing an EBITDA margin of 45.56%, and operating income reached 1,003,211,883 CNY (operating margin 32.99%). Net income was 659,179,213 CNY, yielding a net margin of 21.68% and basic EPS of 0.17 CNY. The YoY improvements across revenue, gross profit, operating income, and net income point to meaningful operating leverage and cost discipline, while the QoQ revenue decline suggests seasonality or near-term production/mix shifts.

Given the absence of explicit cash flow and balance sheet metrics in the provided data, the assessment emphasizes profitability and margin dynamics as the principal near-term indicators of financial health. Zhaojin appears better positioned than several regional peers on margin profitability, but the overall investment thesis should be tempered by the lack of liquidity and cash flow detail in this dataset. Investors should monitor commodity price trajectories, ore grade evolution, sustaining capex intensity, and debt maturity profiles as key drivers of sustained performance.