(600497) Chihong Zinc & Germanium: Declines in Lead-Zinc Ore Output and Processing Fees Weigh on Performance; Germanium Products Expected to Boost Growth through Both Volume and Price Increases – The company is a leading domestic player in lead-zinc and germanium. In the first half of the year, the company's net profit attributable to shareholders fell by 22.28%. The company's lead-zinc concentrate production declined, while smelting products increased. Associated minor metals and rare precious metals experienced both volume and price hikes. Currently, the processing fees for lead-zinc concentrates have dropped to historically low levels, expanding the loss area within the industry. As a leading lead-zinc mining company, the company stands out with its low-cost advantage in mining. Additionally, the price of germanium has surged since June, and the germanium business is expected to contribute significantly to profits in the second half of the year. As a lead-zinc industrial platform under Aluminum Corporation of China Limited, the company controls over 32 million tons of lead-zinc resources and over 600 tons of germanium resources. In 2024, it completed the injection of Qinghai Hongxin resources, placed Jinding Zinc Industry and Yunnan Copper Zinc Industry under trusteeship. In the future, high-quality mineral resources from the group are expected to continue being injected, shaping an internationally renowned lead-zinc enterprise.
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