Xingye Silver & Lead: Q1 net profit up 63.22% YoY, driven by increased production and sales of main ore products and a YoY increase in product selling prices

Xingye Silver & Tin announced in an evening announcement on May 5 that the company had signed the "Offer Implementation Agreement" with Atlantic Tin Limited on April 30. The company intends to designate its wholly-owned subsidiary, Xingye Gold (Hong Kong) Mining Co., Ltd., to make an off-market conditional takeover offer to shareholders holding all the issued shares of the target company at a price of AUD 0.24 per share through an off-market takeover offer. The company will provide financial support for this transaction by Xingye Gold (Hong Kong). Through this transaction, the company aims to integrate overseas tin mine resources, enhance its international tin mine layout, reserve strategic resources for its development, enrich its business layout, and accumulate experience in overseas market investment and operations.

Xingye Silver & Tin disclosed in its Q1 2025 report on April 28 that in the first quarter, the company achieved a total operating revenue of 1.149 billion yuan, up 50.37% YoY; and a net profit attributable to the parent company of 374 million yuan, up 63.22% YoY.

Xingye Silver & Tin's Q1 report showed that: the current period's operating revenue increased by 50.37% compared to the previous period, the current period's operating costs increased by 51.55% compared to the previous period, and the current period's taxes and surcharges increased by 59.56% compared to the previous period. The main reasons are the increase in the production and sales volume of the company's main mineral products and the YoY increase in product selling prices during the reporting period. The current period's operating profit increased by 61.99% compared to the previous period, the current period's total profit increased by 63.25% compared to the previous period, the current period's income tax expenses increased by 65.49% compared to the previous period, and the current period's net profit attributable to the owners of the parent company increased by 63.22% compared to the previous period. The main reasons are the increase in the production and sales volume of the company's main mineral products, the YoY increase in product selling prices, and the increase in operating revenue during the reporting period.

Other important matters announced by Xingye Silver & Tin in its Q1 report include:

1. The company's acquisition of 85% equity in Yubang Mining: The company acquired 85% equity in Chifeng Yubang Mining Co., Ltd., held by Guocheng Mining Co., Ltd., Li Zhenshui, and Li Ruiyang, with 2.388 billion yuan of its own funds and self-raised funds. On January 6, 2025, the company held its first extraordinary general meeting of shareholders in 2025, which approved this transaction. On January 14, 2025, the equity transfer was completed with the industrial and commercial change registration procedures at the market supervision and administration department. Since then, the company has held 85% equity in Yubang Mining, which has become a controlled subsidiary of the company and is included in the company's consolidated financial statements.

2. Approval obtained for the 2.97 million mt expansion project of the subsidiary Yinman Mining: In January 2025, Yinman Mining, a wholly-owned subsidiary of the company, obtained the "Approval from the Development and Reform Commission of Inner Mongolia Autonomous Region on the Approval of the 2.97 Million mt/Year Expansion Project of the Baiyinchagan Dongshan Mining Area Copper-Lead-Tin-Silver-Zinc Mine of Xiwuqi Yinman Mining Co., Ltd." (Nei Fagai Chanye Fazhan Zi (2025) No. 24) issued by the Development and Reform Commission of Inner Mongolia Autonomous Region to the Development and Reform Commission of Xilingol League.Yinman Mining is implementing an expansion project for zinc, lead, silver, copper, and tin ores in the mining area (mining license number C1500002015013210136961). The project's construction scale will be expanded from 1.65 million mt/year to 2.97 million mt/year, with underground mining as the method. The project is classified as a renovation and expansion project. The company will actively promote the construction of the 2.97 million mt/year expansion project at Yinman Mining. Prior to the project's commencement, the company will handle the relevant procedures for land use, environmental protection, energy conservation review, work safety, water and soil conservation, etc., in accordance with relevant laws and administrative regulations, to ensure that the project starts with all necessary permits in place as planned. Upon completion and commissioning of the project, the mining and beneficiation capacity of Yinman Mining will increase from 1.65 million mt/year to 2.97 million mt/year, further enhancing the company's profitability and market competitiveness.

3. Safety incident at subsidiary Yinman Mining:At 16:18 on March 9, 2025, a safety incident occurred during development work at the Yinman Mining project site of Henan Jinyuan Construction Co., Ltd., the mining contractor of the wholly-owned subsidiary Yinman Mining. The incident resulted in one fatality and no injuries. Following the incident, mining operations at Yinman Mining were suspended on March 9, while the beneficiation plant continued normal operations. Currently, Yinman Mining has completed the relevant rectification work in accordance with the regulatory authorities' requirements, and mining operations resumed on April 16, 2025. This incident did not have a significant impact on the company's production and operations, nor did it have a material adverse impact on the company's 2025 performance.

In addition, the 2024 annual report released by Xingye Yinxi shows that in 2024, the company achieved operating revenue of 4,270.3872 million yuan, representing a year-on-year increase of 15.22%; total profit was 1,765.2261 million yuan, a year-on-year increase of 64.69%; and net profit attributable to shareholders of the publicly listed firm was 1,529.8586 million yuan, a year-on-year increase of 57.82%.

Introduction to Xingye Yinxi: In 2024, the proportion of operating revenue from the company's main business of various mineral products in the company's total operating revenue was as follows: tin ore contributed 1,415.3906 million yuan, accounting for 33.14%; silver ore contributed 1,165.409 million yuan, accounting for 27.29%; zinc ore contributed 981.0361 million yuan, accounting for 22.97%; iron ore contributed 234.7111 million yuan, accounting for 5.50%; lead ore contributed 230.3635 million yuan, accounting for 5.39%; copper ore contributed 129.711 million yuan, accounting for 3.04%; antimony ore contributed 62.8116 million yuan, accounting for 1.47%; and gold ore contributed 13.7186 million yuan, accounting for 0.32%. Among these, the combined operating revenue from tin and silver ores accounted for 60.43% of the total.

In its annual report, Xingye Yinxi introduced: During the reporting period, the company's main products included non-ferrous metals and precious metals such as silver, tin, zinc, lead, iron, copper, antimony, and gold.Xingye Yinxi stated: In 2024, the company steadily advanced various tasks and successfully completed its annual production and operation goals. Leveraging its high-quality operating mines, the company achieved dual growth in production and profitability, with its strategic layout yielding significant results.

Xingye Yinxi stated: In 2024, the company produced 8,901.85 mt of tin ore, up 14.58% YoY; 228.93 mt of silver ore, up 14.68% YoY; 59,740.98 mt of zinc ore, up 8.67% YoY; 16,958.57 mt of lead ore, up 8.05% YoY; 2,906.43 mt of copper ore, up 4.94% YoY; 1,351.70 mt of antimony ore, up 32.58% YoY; and 339,100 mt of iron ore, down 3.74% YoY. From 2022 to 2024, the production of the company's main products (excluding bismuth, iron, and gold) increased year by year.

Xingye Yinxi introduced: As of the end of 2024 (including Yubang Mining), the company's metal reserves within the scope of mining licenses for each mine are as follows:

The rise in tin prices in Q1 boosted the profits of tin enterprises. Observing the trend of tin prices in Q1: The average spot price of SMM1# tin on March 31 was 282,200 yuan/mt, up 36,200 yuan/mt from 246,000 yuan/mt on December 31, 2024, representing a 14.72% increase. Comparing the daily average prices of SMM1# tin spot in Q1 this year and in 2024: The daily average price of SMM1# tin spot in Q1 this year was 260,724.56 yuan/mt, up 43,806.46 yuan/mt from 216,918.1 yuan/mt in Q1 2024, representing a 20.19% YoY increase.

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Currently, tin ore supply remains constrained by the slow resumption of production in Myanmar's Wa region and the phased resumption of production at the Bisie tin mine in the DRC (restoring to 60%-70% of normal levels), with only marginal easing of short-term ore supply tightness. Domestic refined tin production is constrained by raw material availability, with operating rates at smelters in Yunnan and Jiangxi remaining low, processing fees (TC) at historical lows, and smelting profits under pressure. However, expectations for the resumption of production in Myanmar are gradually strengthening, and supply increases after Q2 may suppress the upside room for tin prices. The US's 245% tariff policy on traditional solder exports continues to suppress demand (accounting for 40% of tin consumption), but after the Labour Day holiday, some downstream processing enterprises gradually resumed operations, and demand for restocking at low prices was somewhat released. However, due to the rise in tin prices on the morning of May 7, transactions in the tin spot market were sluggish, and the purchasing willingness of downstream and end-user enterprises was dampened.