Jiaxin International Resources Investment (3858) H1 2025 earnings summary

Executive summary

• Commenced phase I commercial production at Boguty tungsten mine in April 2025, generating first revenue of HK$126.3 million for the six months ended June 30, 2025.

• Boguty mine is the world's largest open-pit tungsten mine by mineral resources and has the largest designed concentrate production capacity among single tungsten mines.

• Net loss narrowed to HK$7.0 million for the period, compared to HK$65.0 million loss in the previous period.

• Listed on the Hong Kong Stock Exchange and Astana International Exchange on August 28, 2025, raising HK$1,261.3 million in net proceeds.

• Focused on ramping up production and preparing for future capacity expansion to 4.95 Mt by 2027.

Financial highlights

• Revenue: HK$126.3 million (nil in previous period); cost of sales: HK$108.3 million; gross profit: HK$18.0 million; gross margin: 14.2%.

• Administrative expenses: HK$60.5 million, up 82.2% year-over-year.

• Net finance costs increased to HK$19.8 million, reflecting cessation of capitalization of interest and FX losses.

• Deferred income tax credit: HK$82.6 million recognized on tax losses carried forward.

• Basic and diluted loss per share was HK$1.82 cents, improved from HK$19.31 cents year-over-year.

Outlook and guidance

• Plans to increase annual mining and processing capacity to 4.95 Mt by 2027 with ore sorting system integration.

• Exploring additional investment opportunities in nonferrous metals in Central Asia.