CMOC's revenue in the first half of the year decreased by 7.8% year-on-year, while net profit attributable to the parent company increased by 60.1%, reaching a record high | Financial Report Insights

CMOC's revenue in the first half of the year decreased by 7.8% year-on-year, but thanks to significant improvements in operational efficiency and effective cost control, net profit attributable to shareholders surged by 60.07%, reaching a record high.

On Friday evening, CMOC disclosed its 2025 semi-annual report, with the following key points:

Financial Performance:

Revenue of 94.773 billion yuan, down 7.83% year-on-year; net profit attributable to shareholders of 8.671 billion yuan, up 60.07%, setting a historical high; operating cash flow of 12.009 billion yuan, up 11.4%.

Core Business Progress:

Copper production of 353,600 tons (+12.68%), cobalt production of 61,100 tons (+13.05%), with all products exceeding the first-half targets.

Significant Improvement in Profitability and Strong Cash Flow Performance

Data shows that the company achieved operating revenue of 94.773 billion yuan in the first half of the year. Although this represents a year-on-year decrease of 7.83%, the net profit attributable to shareholders reached 8.671 billion yuan, an increase of 60.07%. Notably, the net profit excluding non-recurring items was 8.724 billion yuan, up 55.08%, indicating that this is not a false prosperity driven by one-time gains.

The net cash flow from operating activities was 12.009 billion yuan, an increase of 11.4% year-on-year, with cash and cash equivalents of 29.191 billion yuan providing ample liquidity, ensuring solid support for the company's future expansion and resilience against cyclical risks. The debt-to-asset ratio was 50.15%, remaining stable compared to the end of the previous year, demonstrating the company's financial discipline amid rapid growth.

Production Exceeds Targets, Operational Efficiency Significantly Improved

All core products achieved the goal of "more than half of the tasks completed in half the time." Specifically, copper production was 353,600 tons, a year-on-year increase of 12.68%; cobalt production was 61,100 tons, a year-on-year increase of 13.05%. The production of molybdenum, tungsten, niobium, and phosphate fertilizer also exceeded 50% of the annual targets.

This comprehensive overachievement reflects the direct improvement in operations at the TFM project in the Democratic Republic of the Congo. The governance of the TFM central zone has achieved phased results, with continuous capacity release in the eastern zone, significant improvements in product quality, and a notable decrease in costs compared to last year. The KFM project continues to maintain stable high production, with costs continuing to decline, showcasing the company's operational resilience in a complex geopolitical environment.

Strategic Expansion: First Entry into the Gold Sector

The company has completed an important strategic shift—successfully acquiring the Kagehaus gold mining project from Odin Mining in Ecuador, marking CMOC's official entry into the gold mining sector. This project is planned to commence production before 2029, further enriching the company's metal portfolio and enhancing its cyclical resistance.

This layout aligns with the company's global strategy of "multiple countries, multiple minerals, and multiple assets," but it also means that the company needs to establish operational capabilities and technical reserves in a relatively unfamiliar field.

Organizational Upgrade and Cost Control as Dual Drivers

Notably, the company's investment in organizational structure upgrades is beginning to show results. The introduction of several industry-background talents has formed a management team that is younger, more international, and more professional, promoting the implementation of a governance model that combines "vertical control from headquarters with horizontal command on-site." On a technical level, the advancement of the Heshima Hydropower Station and new energy power projects in the Democratic Republic of the Congo will provide long-term stable energy security for future production capacity, which has dual significance for reducing operating costs and enhancing ESG performance.

Coexistence of Concerns and Challenges

Despite impressive performance, several issues deserve investors' attention:

First, a 7.83% decline in revenue reflects pressure from commodity prices, and the company's profit growth relies more on operational efficiency improvements rather than market expansion, the sustainability of this model needs to be observed.

Second, while the debt-to-asset ratio of 50.15% is manageable, balancing growth with financial safety remains a challenge in the context of active expansion.

Finally, the geopolitical risks, regulatory changes, and social responsibility pressures facing the company's core assets in the Democratic Republic of the Congo still exist, and ESG compliance costs may continue to rise.

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