Zhaojin Mining Industry (1818.HK) Q4 2025 Earnings Report

Zhaojin Mining Industry Co., Ltd. delivered a standout QQ4 2025 performance reflected in a robust top-line and strong profitability. Revenue for the quarter reached 10.90 billion CNY, up sharply on a year-over-year basis, accompanied by a gross profit of 4.44 billion CNY and an EBITDA of 4.40 billion CNY. The quarter’s net income was 2.14 billion CNY, translating to a net margin of approximately 19.6% and an EPS of 0.60 CNY. Operating leverage remained favorable with operating income of 3.43 billion CNY and an operating margin around 31.5%. The company continues to generate substantial operating cash flow, supporting a solid liquidity profile, even as the balance sheet shows meaningful leverage (total debt around 24.36 billion CNY and net debt about 21.92 billion CNY).

Key takeaway for investors is the combination of revenue growth and margin expansion amid a favorable gold environment, supported by disciplined cost management and a strong product mix. However, leverage remains a key consideration, with net debt/EBITDA approaching near 5x, and ongoing capital expenditure and debt maturities warrant close monitoring. The quarter’s results imply resilience in gold operations amidst industry cyclicality, but the sustainability of earnings will hinge on gold price trajectories, production volumes, capex allocations, and debt maturity management going forward.