Zhaojin Mining Industry (1818.HK) Q3 2024 Earnings Report

Zhaojin Mining reported a resilient QQ3 2024 with a revenue of 3.4617 billion CNY, marking a 17.8% year-over-year increase and a 30.8% quarter-over-quarter increase. The company posted a solid gross profit of 1.2662 billion CNY and a gross margin of 36.58%, supported by a robust operating margin of 23.66% and an EBITDA of 1.18 billion CNY. Net income reached 449.0 million CNY, up 96.5% YoY and 35.5% QoQ, with diluted EPS of 0.11 CNY and basic EPS of 0.15 CNY. Operating cash flow stood at 1.3982 billion CNY for the quarter, yielding a free cash flow of 892.6 million CNY after capex of 505.5 million CNY. These results reflect improved operating leverage as Q3 followed a weak Q2, with better cost control and favorable input dynamics contributing to margin expansion. The company also undertook shareholder-friendly actions, including a cash dividend-related outflow and a share repurchase activity of 500 million CNY, highlighting capital allocation discipline amidst a debt-heavy balance sheet.