Yunnan Chihong Zn & Ge Co., Ltd. Reports Revenue and Net Profit Growth in First Quarter

In Q1, Yunnan Chihong Zn & Ge Co., Ltd. (hereinafter referred to as "Chihong Zn & Ge") adhered to the principle of maximizing benefits, implemented the "Iron-blooded Cost Reduction" initiative, and further enhanced the profitability of its core businesses. In Q1, the company achieved operating revenue of 5.144 billion yuan, up 10.10% YoY; net profit attributable to the parent company of 494 million yuan, up 1.40% YoY; and non-GAAP net profit of 485 million yuan, up 5.38% YoY.

Since the beginning of this year, Chihong Zn & Ge has comprehensively implemented Chalco Group's new strategic execution system of "4+4+N+Annual Key Special Projects," efficiently compiled the annual business white paper, matched it with a precise performance evaluation system, and organized production in a refined manner. In the mining sector, a production operation supervision working group was established to identify key, difficult, and bottleneck issues of each mining enterprise point-to-point, formulate promotion plans, and conduct full-process supervision, tracking, inspection, and evaluation. The production of major products in the mines exceeded the plan, and five key technical and economic indicators of three mining enterprises reached record highs. In the smelting sector, the company adhered to the "one enterprise, one policy" approach, established a production organization profit model for smelters, fully leveraged the advantages of lead-zinc joint production and comprehensive recovery, and increased the total recovery rate of zinc smelting by 0.14 percentage points YoY. In deep processing, production plans for zinc alloys and plates were formulated, and key tasks such as cost reduction, efficiency improvement, and inventory control were carried out effectively, enhancing the comprehensive profitability of zinc alloys. Sales of zinc alloys increased by 8.96% YoY, and plate production rose by 59.90% YoY. In germanium materials, the recovery rate from germanium concentrate to zone-refined germanium exceeded the plan by 0.11%, and the primary purification rate of zone-refined germanium exceeded the plan by 4.08%. In marketing, the company stabilized existing cooperative channels, continuously developed strategic end-user customers, optimized inventory management, accelerated product exports, and successfully achieved revenue growth. Net cash flow from operating activities increased by 58.97% YoY.

Driven by the dual factors of high volatility in lead-zinc prices and the release of demand from emerging industries, Chihong Zn & Ge is expected to continue benefiting from the industry's prosperous cycle and move towards broader growth space.