--- title: "CMOC Q1 Net Profit Surges 97% to 7.76 Billion; Gross Margins for Copper, Cobalt, and Tungsten All Rise" type: "News" locale: "en" url: "https://longbridge.com/en/news/284041520.md" description: "In the first quarter of 2026, CMOC achieved revenue of 66.4 billion yuan, a year-on-year increase of 44.34%; net profit attributable to shareholders was 7.76 billion yuan, a significant year-on-year increase of 96.65%. The copper business contributed 15.8 billion yuan with gross margin rising to 63.69%; cobalt business gross margin surged to 86.27%, demonstrating the company's ability to control cycles through 'trading volume for price'; newly consolidated gold mines contributed 1.2 billion yuan. The company completed the issuance of 1.2 billion USD zero-coupon convertible bonds, optimizing its debt structure, but exchange rate fluctuations resulted in a 1.36 billion yuan loss in other comprehensive income" datetime: "2026-04-24T17:54:13.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284041520.md) - [en](https://longbridge.com/en/news/284041520.md) - [zh-HK](https://longbridge.com/zh-HK/news/284041520.md) --- # CMOC Q1 Net Profit Surges 97% to 7.76 Billion; Gross Margins for Copper, Cobalt, and Tungsten All Rise CMOC disclosed its first-quarter 2026 report. The company achieved operating revenue of 66.4 billion yuan, a year-on-year increase of 44.34%; net profit attributable to parent company shareholders was 7.76 billion yuan, a year-on-year increase of 96.65%. Basic earnings per share increased from 0.18 yuan in the same period last year to 0.36 yuan, while the weighted average return on net assets reached 9.06%, an increase of 3.57 percentage points year-on-year. **Performance growth was primarily driven by price increases in main products and simultaneous increases in production and sales volumes.** In the first quarter, copper production and sales volumes increased by 10.15% and 47.11% year-on-year, respectively; due to a decline in procurement costs, the gross margin of cobalt products reached 86.27%, an increase of approximately 25 percentage points compared to the same period last year. Additionally, in January this year, the company completed the acquisition of four gold mines in Brazil, bringing the gold business into consolidation for the first time and contributing 1.2 billion yuan in operating revenue. Regarding cash flow, the net cash flow from operating activities in the first quarter was 11.3 billion yuan, a year-on-year increase of 762%, primarily driven by net inflows from base metal trading businesses. The balance of monetary funds at the end of the period approached 45 billion yuan, an increase of over 11.3 billion yuan from the beginning of the year. The company also completed the issuance of 1.2 billion USD convertible bonds in the first quarter, compressing long-term borrowings by nearly half and continuously optimizing the debt structure. ## Copper Business Steadily Contributes 15.8 Billion, Cobalt Gross Margin Surges to 86% **The copper business remains the core profit pillar for CMOC.** In the first quarter, the copper mining sector achieved operating revenue of 15.8 billion yuan, a year-on-year increase of 27.22%, with a gross margin of 63.69%, an increase of 8.48 percentage points year-on-year. Performance growth was primarily driven by the dual forces of continuous capacity release from the TFM and KFM mines in the Democratic Republic of Congo (DRC) and the upward shift in the copper price center. Of particular note is that the brand "TFM-1" for TFM products officially passed Level A registration certification with the London Metal Exchange (LME) this quarter, meaning the company's copper products can participate in international non-ferrous metal futures and spot market deliveries, further enhancing product premium capabilities and global influence. Additionally, the renewal of relevant mining licenses for TFM has been completed, with a validity period of 15 years, eliminating regulatory uncertainties for continued mine production. **Cobalt is the most elastic product category this quarter.** Driven by a significant rebound in cobalt prices, the gross margin of the company's cobalt business jumped from approximately 61% in the same period last year to 86.27%, an increase of nearly 25 percentage points. The 52% year-on-year decline in revenue was mainly due to a strategic contraction in sales volume (down 91.79% year-on-year); the company apparently reduced external sales during the price trough to accumulate inventory instead, and optimized the sales rhythm after prices recovered. This operational logic of "trading volume for price" allowed the cobalt business to contribute 1.8 billion yuan in revenue and a substantial 1.55 billion yuan in gross profit with very limited shipment volume, fully demonstrating the company's ability to control market cycles. ## Gold Mines Consolidated for First Time Contributing 1.2 Billion, Molybdenum and Tungsten Profits Continue to Improve On January 23, 2026, the company completed the acquisition and closing of 100% equity interests in Equinox Gold's Aurizona gold mine, RDM gold mine, and Bahia integrated mining area. Due to consolidation for only about two months, the gold mine sector contributed 1.2 billion yuan in operating revenue in the first quarter, produced 43,000 ounces of gold, and achieved a gross margin of 45.63%, demonstrating strong profitability. As the full-quarter consolidation effect of the Brazilian gold mines gradually releases in subsequent quarters, combined with the advancement of the company's established gold production planning targets, **the gold business is expected to rapidly grow into the third largest profit source following copper and cobalt**, further enriching the company's diversified layout in the field of global key minerals. It should be noted that this acquisition was the main reason for the net cash outflow from investment activities of 10.9 billion yuan, but the company's ample operating cash flow and funds raised from new bond issuances effectively offset this. **Domestic molybdenum and tungsten sectors maintained stable operations.** The molybdenum business achieved operating revenue of 1.8 billion yuan, with gross margin rising from approximately 37% to 46.78%, an increase of 9.8 percentage points; production volume declined slightly by 4.7%, having a limited impact. The tungsten business performed even more prominently, with operating revenue nearing 2 billion yuan; the increase in operating costs was significantly lower than the increase in revenue, with gross margin rising by 5.36 percentage points to 70.93%, showing marked improvement in profit quality, primarily benefiting from the structural rise in tungsten prices. ## Zero-Coupon Convertible Bonds Optimize Debt Costs, Exchange Rate Risks Become Profit Variables In the first quarter, the company issued 1.2 billion USD zero-coupon convertible bonds through overseas subsidiaries; related funds were reflected in other current liabilities (increasing 836% quarter-on-quarter to 9.1 billion yuan) and cash inflows from financing activities. Meanwhile, long-term borrowings were compressed by approximately 49% from the beginning of the year to 600 million yuan, presenting a trend of shortening maturity and lowering costs in the interest-bearing debt structure. Of particular note is that other comprehensive income recorded -1.36 billion yuan in the first quarter, primarily consisting of foreign currency translation differences caused by exchange rate fluctuations between the US dollar, Congolese franc, and other foreign currencies against the Chinese yuan; financial expenses increased by 59% year-on-year, with exchange losses being the main factor. 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