ZGXT's H1 Net Profit Rises 46.5%, Cash Flow Surges 1658%, Core Business Profitability Significantly Improves | Financial Report Insights
Complete. Here is the key summaryZGXT's net profit attributable to shareholders of the listed company reached RMB 237 million in the first half of the year, a year-on-year increase of 46.53%; operating revenue was RMB 1.647 billion, a year-on-year decrease of 12.19%. The net cash flow from operating activities improved significantly, turning from a net outflow of RMB 45.6 million in the same period last year to a net inflow of RMB 711 million, an increase of 1658.72%
The parallel trend of declining revenue and substantial profit growth at ZGXT Group Resource Technology Co., Ltd. reflects the structural improvement in corporate profitability under the current industry pattern of trading price for volume.
The 2026 semi-annual report disclosed by the company on August 7 shows that the net profit attributable to shareholders of the listed company in the first half of the year reached RMB 237 million, a year-on-year increase of 46.53%; the net profit after deducting non-recurring gains and losses was RMB 240 million, a year-on-year increase of 55.49%. Meanwhile, the company's operating revenue was RMB 1.647 billion, a year-on-year decrease of 12.19%.
The net cash flow from operating activities improved significantly, turning from a net outflow of RMB 45.6 million in the same period last year to a net inflow of RMB 711 million, an increase of 1658.72%, indicating a significant enhancement in the company's actual operational quality. This data holds important reference value for assessing the sustainability of the company's profitability.
The Board of Directors has decided not to distribute cash dividends, not to issue bonus shares, and not to convert capital reserves into share capital for this period.
Revenue Decline Amidst Surge in Profits, Significant Optimization of Profit Structure
A 12.19% drop in revenue coupled with a nearly 50% rise in net profit indicates a substantive change in the company's profit structure during the reporting period.
In terms of key financial indicators, basic earnings per share rose from RMB 0.1524 in the same period last year to RMB 0.2233, an increase of 46.52%; the weighted average return on equity increased from 3.42% to 4.81%, a rise of 1.39 percentage points. As of the end of the reporting period, the company's total assets were RMB 5.956 billion, an increase of 3.82% compared to the end of the previous year; net assets attributable to shareholders of the listed company were RMB 5.063 billion, an increase of 5.33% compared to the end of the previous year.
The growth rate of net profit after deducting non-recurring items (55.49%) exceeded the growth rate of net profit (46.53%), implying that the contribution of the company's core business to profitability is more prominent, while the interference of non-recurring gains and losses on profits is relatively limited, leading to an improvement in earnings quality.
Stable Shareholding Structure, State-owned Shareholders Hold Over 30% Combined
The company's shareholding structure remains stable, with no changes to the controlling shareholder or actual controller during the reporting period.
Among the top ten shareholders, the shareholding ratio of state-owned legal persons is relatively concentrated. ZGXT Group Industrial Development Co., Ltd. holds 22.17%, making it the largest shareholder; Guangdong Guangsheng Holding Group Co., Ltd. holds 9.48%; and ZGXT Group Co., Ltd. holds 6.39%. Among these, ZGXT Group Industrial Development Co., Ltd. and ZGXT Group Co., Ltd. have an affiliated relationship, with the latter being the actual controller of the former.
Regarding foreign capital, HKSCC Nominees Limited holds 2.81%, and J.P. Morgan Securities PLC holds 0.37% with its own funds. The total number of ordinary shareholders at the end of the reporting period was 177,656.
Two Strategic Initiatives Underway, Strengthening Asset Integration and Capacity Layout
During the reporting period, the company is advancing two important matters, both aimed at enhancing core competitiveness and operational efficiency.
The first is internal asset integration. The company has approved through its Board of Directors and Shareholders' Meeting the proposed absorption and merger of its wholly-owned subsidiary, Zhongxi Ganzhou. Upon completion of the merger, the legal entity status of Zhongxi Ganzhou will be cancelled, and all its assets, claims, debts, and other rights and obligations will be inherited by the company. This proposal was disclosed in August 2025, and related work is currently still underway.
The second is the relocation of production capacity. Due to constraints on long-term development imposed by its existing production and operation sites, the company's subsidiary, Guangzhou Jianfeng, plans to purchase industrial land in Conghua District, Guangzhou, to implement a relocation project for rare earth deep processing and new material manufacturing. The company disclosed this plan in April 2026, stating that the move aims to enhance high-quality and sustainable development capabilities. Related work is also currently underway.