Zhaojin Mining Industry Company Limited: 2025 Annual Report – Key Highlights and Shareholder Updates

Overview

Zhaojin Mining Industry Company Limited (“Zhaojin Mining” or “the Group”) has released its 2025 Annual Report, providing investors and shareholders with a comprehensive review of the company’s performance, strategic direction, risk management, corporate governance, and significant financial events for the year ended 31 December 2025.

Key Financial and Operational Highlights

• Robust Performance Amid Global Volatility: Despite a volatile geopolitical landscape and rapidly rising gold prices driven by increased central bank purchases, Zhaojin Mining achieved outstanding annual results in 2025, with simultaneous growth in production volume and gold prices. The company recorded improved quality, efficiency, and profitability across its core businesses.
• Strong Dividend Proposal: The Board has proposed a final cash dividend of RMB354,239,000 for 2025, more than double the previous year’s RMB170,120,000, reflecting the Group’s enhanced profitability. If approved at the 2025 AGM, the dividend is scheduled for payment by 30 June 2026.
• Significant Increase in Distributable Reserves: As of 31 December 2025, distributable reserves rose sharply to RMB8.32 billion (from RMB5.30 billion in 2024), supporting the company’s dividend policy and future investment capacity.
• Successful Capital Raising: In March 2025, Zhaojin Mining completed a placement of 140,000,000 new H Shares at HK\$14.16 per share, raising net proceeds of approximately HK\$1.97 billion. The funds were fully utilized to replenish working capital and repay bank loans, strengthening the Group’s financial position and reducing gearing.
• Debt Management and Fundraising: The company was active in the bond market, issuing several tranches of super short-term bonds and Sci-Tech innovation bonds, with individual tranches ranging from RMB800 million to RMB1 billion and coupon rates between 1.58% and 2.20%. The proceeds were primarily used to repay maturing debts, demonstrating prudent liquidity and risk management.
• Expansion and Strategic Vision: 2026 marks the start of Zhaojin Mining’s 15th Five-Year Plan, with a focus on international development and consolidation of its core businesses, aiming to become a global gold industry leader.

Corporate Governance and Compliance

• Board and Committee Oversight: The Board and its committees (including Audit, Nomination and Remuneration, and Strategic Committees) maintained rigorous oversight of risk management, internal controls, and operational strategy. The company received an unqualified audit opinion from Ernst & Young, with no material uncertainties regarding its going concern status.
• ESG Commitment: Zhaojin Mining has implemented robust environmental protection measures and published a separate ESG report, underlining its commitment to sustainable practices and regulatory compliance.
• No Material Non-Compliance: There were no material breaches of laws or regulations during the reporting period.

Share Capital, Shareholder Structure, and Public Float

• Shareholder Base: As of 31 December 2025, the Group had 1,149 shareholders, with 1,148 holding H Shares and one holding Domestic Shares. The company confirmed compliance with public float requirements.
• No Share Buybacks or Treasury Shares: Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the year.
• No Convertible Securities or Share Options: The Group has no outstanding share option scheme or similar rights as at the report date.

Connected Transactions and Related Party Dealings

• Multiple Framework Agreements: The Group entered into or continued several connected and continuing connected transactions, primarily with Zhaojin Group, Zijin Mining, and other related parties, including:
  • Processing, smelting, resource extraction, and technical service agreements
  • Gold concentrates sales and purchase agreements
  • Sales of silver, sulphur concentrate, and finished gold
  • Material procurement and informatization services agreements
  • Financial services agreements with Zhaojin Finance Company (including deposit, loan, and bill discounting services, some of which constitute major transactions and require shareholder approval)

  All continuing connected transactions were conducted on normal commercial terms, reviewed by independent non-executive directors, and, where required, approved by independent shareholders.

• Major Connected Financial Transactions: Certain financial services provided by Zhaojin Finance Company, including deposit and bill discounting services with annual caps exceeding 25%, were classified as major transactions and non-exempt continuing connected transactions, subject to enhanced reporting, announcement, and shareholder approval requirements. These arrangements could have significant implications for liquidity, funding costs, and related party exposure.
• Potential Price Sensitivity: Any adverse developments or regulatory scrutiny related to these connected transactions or their terms (especially those classified as major transactions) could impact investor sentiment and share price.

Risk Factors and Industry Outlook

• Policy and Regulatory Risks: Changes in gold industry policies or regulations in China could have a significant impact on the Group’s business, financial results, and investment plans. The Group remains vigilant and responsive to policy changes.
• Market and Financial Risks: The Group is exposed to liquidity, interest rate, commodity price, foreign currency, credit, and equity price risks. It maintains prudent risk management practices, including sufficient cash, credit facilities, and diversified funding channels.
• Gold Price Sensitivity: The strategic value of gold is expected to remain high amid global economic uncertainty, supporting Zhaojin Mining’s core business and asset allocation attractiveness.

Investor Relations and Corporate Actions

• Enhanced Investor Engagement: The company increased its investor relations activities, hosting multiple roadshows, performance briefings, and maintaining direct communication channels. These efforts have been recognized with several investor relations awards.
• Changes in Constitutional Documents: The company amended several articles of its Articles of Association in 2025, following shareholder approval at general meetings.
• No Material Litigation or Arbitration: The Group confirmed the absence of significant legal or arbitration proceedings.

Forward-Looking Statements and 2026 Outlook

• International Expansion: 2026 will be the first year of the 15th Five-Year Plan, with an emphasis on internationalization, resource expansion, and innovation-driven growth.
• Upcoming Capital Market Activity: The Group has obtained approval to register and issue up to RMB12 billion in new super short-term bonds and up to RMB8 billion in medium-term notes, providing ample financial flexibility for future growth and strategic initiatives.
• Dividend Policy: The company remains committed to an annual dividend policy, with flexibility for interim or special dividends based on financial performance and capital requirements.

Potential Price-Sensitive Information

• Significant Increase in Dividend Payout and Distributable Reserves: The sharp rise in proposed dividends and distributable reserves could positively influence the share price, reflecting management’s confidence in sustained profitability and cash flow generation.
• Major Connected Transactions and Capital Raising: The scale of recent and planned capital market activities, including major connected financial transactions and bond issuances, could significantly affect the company’s capital structure, cost of funds, and market valuation.
• Strategic Shift to Internationalization: The explicit commitment to international expansion and innovation may lead to new investments, partnerships, or acquisitions, potentially impacting future earnings and risk profile.

Disclaimer

This article is a summary and analysis based on the latest annual report of Zhaojin Mining Industry Company Limited. It is intended for informational purposes only and does not constitute investment advice. Investors should refer to the company’s official filings and consult with their financial advisors before making any investment decisions. The author and publisher accept no liability for any losses arising from reliance on this article.

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