Tongling Nonferrous Metals Group Co Ltd

Guangdong Jingyi Metal Co., Ltd. announced that from January 1 to August 30, 2026, the company and its subsidiaries signed cumulative cathode copper purchase contracts with Foshan Nanhai Minyixing Trading Co., Ltd. and Tongling Nonferrous Metals Group Shanghai International Trading Co., Ltd., with amounts of approximately 1.197 billion yuan and 989 million yuan respectively, totaling about 2.186 billion yuan excluding tax. The company signed framework agreements with the two suppliers at the beginning of the year, valid for the whole year, for the purchase of cathode copper meeting the GB/T467-2010 standard. The purchase amount from Minyixing accounts for more than 50 percent of the company's audited total assets for 2025, while the purchase amount from Tongling Nonferrous is close to 50 percent. The company said the contracts help secure upstream resource supply and ensure stable supply to downstream customers, and have no material impact on business independence, but cautioned that prices and quantities are subject to uncertainty and that the company faces policy and market risks.

Tongling Nonferrous Metals has released its interim report for the first half of 2026. Total operating revenue was 121.77 billion yuan, an increase of 45.642 billion yuan from the same period last year, up 59.95% year on year, marking a fourth consecutive year of growth. Net profit attributable to the parent company was 2.993 billion yuan, up 107.93% year on year, an increase of 1.553 billion yuan from a year earlier. Net cash inflow from operating activities was 54.39 million yuan, up 68.95% year on year. The company's latest asset-liability ratio was 56.31%, gross margin was 9.28%, return on equity was 7.86%, and diluted earnings per share was 0.22 yuan, up 100.00% year on year. Total asset turnover was 1.16 times, and inventory turnover was 3.19 times. The number of shareholders was 744,400, and the top ten shareholders held 51.61% of the total share capital.

Tongling Nonferrous Metals released its 2026 semi-annual report on August 27. In the first half of the year, it achieved operating revenue of 121.715 billion yuan, up 59.98% year on year, and net profit attributable to shareholders of the listed company of 2.993 billion yuan, up 107.93% year on year. The company also announced a profit distribution plan, proposing a cash dividend of 0.60 yuan per 10 shares, tax included, to all shareholders.

The nonferrous metals sector on the Shenzhen Stock Exchange delivered a strong performance in the first half of 2026. As of August 24, among the 30 companies that had disclosed interim reports, 18 reported earnings growth exceeding 50 percent, and 16 exceeded 100 percent. Hongqiao Holdings achieved revenue of 86.504 billion yuan, up 11.95 percent year on year, with net profit attributable to shareholders of 15.645 billion yuan, up 77.02 percent. Yunnan Aluminium expects net profit attributable to shareholders of 7.5 billion to 7.8 billion yuan, up 170.98 percent to 181.82 percent. Shenhuo Coalfield Power posted net profit attributable to shareholders of 4.781 billion yuan, up 151.06 percent. Tianshan Aluminum reported net profit attributable to shareholders of 4.177 billion yuan, up 100.44 percent. Tongling Nonferrous Metals expects net profit attributable to shareholders of 2.65 billion to 3.15 billion yuan, up 84.13 percent to 118.87 percent. Shanjin International Gold posted net profit attributable to shareholders of 2.416 billion yuan, up 51.43 percent. China Tungsten and Hightech Materials reported net profit attributable to shareholders of 2.076 billion yuan, up 280.53 percent. Continued strength in precious metals prices such as gold and silver, tight supply and demand for industrial metals including copper, aluminum, tin and tungsten, and recovering demand for new energy metals such as lithium and rare earths combined to drive a substantial improvement in industry profitability. Many companies are optimistic about the second half of the year, believing the aluminum industry is likely to maintain a tight supply-demand balance and that electrolytic aluminum prices are expected to remain elevated and volatile.

The Democratic Republic of Congo's export ban has ignited a rally in China's nonferrous metals sector, with cobalt and copper stocks surging across the board. On August 7, Hanrui Cobalt jumped 8.53%, Tengyuan Cobalt rose 5.86%, and Huayou Cobalt gained 6.30%; Jiangxi Copper climbed 7.20%, and Tongling Nonferrous Metals advanced 5.94%. The move follows the DRC government's order to ban exports of copper and cobalt concentrates, aiming to promote domestic downstream processing. Institutions broadly view this as more of a sentiment shock than a fundamental one. Funeng Futures noted the ban is a reiteration and tightening of existing controls, while Fubao Nonferrous Metals' copper analysis team pointed out that most copper concentrates are already refined domestically, with limited actual export volumes. Listed companies including Zijin Mining, CMOC Group, Huayou Cobalt, and Hanrui Cobalt all responded that the ban has limited impact on their operations, as their products are mostly blister copper, cathode copper, or cobalt hydroxide, not concentrates. Meanwhile, copper market supply disruptions remain frequent. LME copper inventories fell 24.11% month-on-month in July, while COMEX copper stocks continued to hit record highs. Goldman Sachs expects the copper supply deficit outside the US to surge from 60,000 tonnes to 640,000 tonnes, and Citigroup forecasts London copper could challenge 15,000 dollars per tonne in the next six to twelve months.