The increase in gross profits of the copper and cobalt sectors drove an increase in net
profit attributable to the parent company
In the first quarter of 2025, the company’s operating income was 46.01 billion yuan (RMB,
the same below) with a year-on-year decrease of 0.25%; the gross profit margin was 22.3%;
the net profit attributable to the parent company was 3.95 billion yuan with a significant
year-on-year increase of 90.47%, mainly due to the company’s copper and cobalt product
sales prices increased compared with the same period of the last year, while continuing to
improve management efficiency, and overall costs decreased year-on-year; EPS was 0.18
yuan with a year-on-year increase of 80%.
Copper and cobalt production increased but sales stagnated
In 2025Q1, the company’s copper production was 171,000 tons with a year-on-year increase
of 15.65%, hitting a record high, and sales were 124,000 tons with a year-on-year decrease
of 1.36%; cobalt production was 30,000 tons with a year-on-year increase of 20.68%, and
sales were 24,000 tons with a year-on-year decrease of 0.24%. The production was the
company’s own production data, and the sales volume was the final external sales volume,
which showed that the company’s sales volume was lagging behind. The company’s annual
report data showed that the global refined copper supply in 2024 was about 26.6 million
tons with a year-on-year increase of 3.1%, and the demand was about 26.4 million tons with
a year-on-year increase of 3.0%, and the supply was slightly higher than the demand. We
believe that the demand for copper will continue to grow steadily in the future. Copper is
widely used in the fields of new energy vehicles and renewable energy. In addition,
benefiting from China’s old-for-new policy, the demand for copper in the home appliance
industry has also further increased. The company’s copper sales are expected to grow in
2025. The main producers of copper are Peru and Chile, and their supply is vulnerable to
strikes and conflicts. In the long run, although copper prices may fall, it will still be at a high
level. A report by the Cobalt Institute showed that global cobalt consumption was 222,000
tons in 2024. Driven by the development of the electric vehicle market, global cobalt
demand (excluding government inventories) would grow at an average annual rate of 7%,
reaching 400,000 tons by the early 2030s. In the next few years, global cobalt supply will
grow at an average annual rate of 5%. The cobalt market may face a situation of demand
over supply, and cobalt prices were expected to rise. The company’s cobalt business may
achieve an increase in both volume and price.
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本科主修市場行銷和英語，並於香港浸會大學獲得經濟學碩士學位。現為輝立証券持牌分析師，主要負責能源和公用事業等板塊的研究。曾在大型銀行、券商和資產管理公司工作，對於期貨和大宗商品衍生品領域擁有銷售、研究分析和市場推廣等工作經驗。 Margaret, a holder of a Bachelor`s degree in Marketing and English and a Master`s degree in Applied Economics from Hong Kong Baptist University, is currently employed as a licensed analyst at Phillip Securities. She specializes in conducting research focusing on the energy and utilities sectors. Prior to her current position, Margaret gained valuable work experience in a large bank, securities firm, and asset management companies. Her expertise lies in sales, research analysis, and marketing within the fields of futures and commodities derivatives.
