Gold miner's first-half net jumps 34pc
KathyWang
Gold producer Zhaojin Mining (1818) said net profit rose 34.56 percent in the first six months on the back of higher gold prices, although it posted a lower profit margin.
The Shandong-based firm said net income rose to 214.4 million yuan (HK$243.77 million), or 0.15 yuan a share, from 159.3 million yuan, or 0.11 yuan, a year earlier. Revenue jumped 41.79 percent to 751 million yuan.
Zhaojin's average sales price of its gold traded on the Shanghai Gold Exchange was 209.35 yuan per gram - 29.51 percent higher than in the previous year.
In a statement filed with the Hong Kong stock exchange, Zhaojin said its sales costs surged 77.53 percent to 346 million yuan during the first six months.
Gross profit margin declined 53.96 percent during the same period, due to the higher sales volume of purchased gold and a lower gross profit margin on newly acquired mining enterprises. The company, which operates five mines in eastern Shandong province, produced 110,727 ounces of gold in the first half - 7.3 percent more than a year earlier.
Zhaojin shares dropped 4.9 percent to HK$5.40 on Friday. They have fallen 41 percent in the past month.