On March 25, Hainan Mining released its 2024 annual results report. Against the backdrop of intensified fluctuations in global commodity markets, the company achieved net profit attributable to shareholders of RMB706 million in 2024, representing a year-on-year increase of 12.97%, with non-GAAP net profit reaching RMB680 million, a significant year-on-year growth of 23.72%, demonstrating strong growth resilience.

During the reporting period, the company continued to improve its industrial layout across three key sectors - "iron ore + oil & gas + new energy" - by optimizing lean management in iron ore operations, acquiring oilfield assets in Oman, and advancing lithium resource development, thereby further expanding its global resource footprint.

On the same day as the earnings announcement, the company proposed a cash dividend distribution of RMB0.80 per 10 shares to all shareholders, marking the third consecutive year that Hainan Mining has distributed cash dividends to shareholders.

Operating Performance Grows Against Market Trend  Oil & Gas Business Output Hits Record High

In 2024, despite year-on-year declines in iron ore and crude oil prices, coupled with impacts from iron ore trading business restructuring and reduced blended ore revenue, Hainan Mining reported annual revenue of RMB4.066 billion, down 13.11% year-on-year. However, through lean management that strengthened cost advantages, the company reduced operating costs by 17.34% year-on-year, driving gross margin up by 3.35 percentage points to 34.82%. Net operating cash flow reached RMB1.388 billion, continuously fueling strategic investments.

Iron Ore Business Maintains Steady Performance. The underground iron ore production reached 4.91 million tonnes, achieving full production capacity for three consecutive years. Sales of finished ore products totaled 2.38 million tonnes, with long-term contract and strategic customer sales increasing by approximately 20% year-on-year. Furthermore, the company's lump ore products demonstrated strong counter-cyclical capabilities in the weak market, with annual average lump ore settlement prices about 16% higher than market benchmarks, maintaining relatively high gross margins.

Oil & Gas Business Experiences Robust Growth. Roc Oil's annual equity output reached 8.09 million barrels of oil equivalent (BOE), representing 29% year-on-year growth and marking the third consecutive year of growth to hit a record high. This growth primarily came from the Bajiaochang Gas Field and Malaysian oilfields, which exceeded production targets while maintaining consistently high output. Notably, the equity output of natural gas from the Bajiaochang Gas Field reached 5.48 million BOE, a 59% increase year-on-year.

Lithium hydroxide project

New energy upstream lithium mining and lithium salt processing projects progress orderly. As of March 2025, phase I of the Bougouni Lithium Mine in Mali has completed construction and achieved conditions for continuous stable production. The 20,000-tonne lithium hydroxide project in Yangpu, Hainan has finished main construction works and successfully conducted trial production in the metallurgical section, with qualified products expected to be produced in April. The company is poised to become one of the few upstream lithium enterprises in China with integrated advantages of owning high-quality mines and advanced processing production lines.

Globalization of resource deployment accelerates, expanding industrial deployment to the Middle East

The company has consistently advanced its global resource deployment, successfully completing one overseas M&A project annually for three consecutive years. In 2024, revenue from overseas subsidiaries reached RMB1.968 billion, accounting for 48% of total revenue, while overseas assets totaled RMB5.828 billion, exceeding 45% of the company's total assets.
In 2024, the company expanded its resource footprint to the Middle East through the successful acquisition of Tethys Oil AB, securing oilfield interests in four blocks in the Sultanate of Oman. This strategic move increased Roc Oil's crude production by 140%, positioning the company as a leader among independent oil and gas firms listed on China's A-share market, second only to the three national oil giants. The newly acquired exploration blocks cover nearly 90% of undeveloped areas, with substantial prospective reserves that will drive medium-to-long term growth.
In July 2024, signed a MOU agreement with Saudi Arabia's Ajlan & Bros Mining Company to jointly assess the feasibility of lithium salt projects in Saudi Arabia. In December 2024, launched the acquisition of producing zirconium-titanium mines in Mozambique, expanding its African investments and entering the promising minor metals and rare earth sectors to enhance profitability.

At present, the company's industrial layout is mainly located in China and Southeast Asia, West Africa and the Middle East, covering iron ore, oil, natural gas, lithium ore and other strategic resource varieties. In this annual report, the company disclosed for the first time the resources and reserves of cobalt-copper mines, and has initiated the feasibility study and economic assessment of resource exploitation and other work.

Actively Creating Value for Shareholders Proposed Cash Dividend of $197 Million

In 2024, the Company launched a three-pronged approach to repurchase, increase holdings and dividend distribution, effectively implementing the action plan of “Improving Quality, Increasing Efficiency and Focusing on Returns” , and actively creating value for shareholders: the cumulative amount of cash dividends during the year amounted to 238 million yuan; it invested 317 million yuan in the year to carry out a number of share repurchases; and it was the first time for the implementation of a collective increase in the holdings of senior executives and launching a new round of restricted stock incentive plan. Incentive Program.
While achieving steady growth in business performance, the company attaches great importance to and continuously improve the level of compliance governance and information disclosure, in 2024 in the Shanghai Stock Exchange's annual evaluation of information disclosure for the first time to obtain A grade, is expected to mergers and acquisitions, reorganization, refinancing review and other aspects of the “green channel”.
March 14 this year, the company again released a new round of share repurchase plan, intends to 75 million yuan to 150 million yuan of its own and special loan funds to implement the repurchase, the repurchase of shares will be used to write off and reduce the registered capital.
At the same time as the disclosure of the 2024 annual results, the company also released the “Announcement on the 2024 annual profit distribution plan”, intends to pay cash dividends of $0.80 per 10 shares to all shareholders, together with 39.48 million yuan of dividend payout in the first three quarters of 2024, the company intends to pay a total of 197 million yuan of cash dividends for the year 2024.

Focusing on strategic “Minerals + Energy”, future performance growth is expected

In 2024, the company achieved high-quality earnings growth and resource calibration in a complex environment. In 2025, which is full of uncertainties, a number of key projects of the Company will enter the output period, and the future earnings growth has shown a clear path.
The magnetization roasting technology renovation system of Shiliu Iron Ore is expected to realize the full production line opening and linkage test run in April, and the iron ore business will add new 65% grade iron ore concentrate with high gross profit margin and high recovery rate, which will help realize the goal of steady production and efficiency increase in this segment.
The oil and gas business will quickly complete the post-investment integration and management of Tethys, stabilize the production of Oman Oil Field Blocks 3&4, and promote the investment and development of Block 56. The daily production of Bajiaochang gas field has reached 3.6 million cubic meters after the capacity expansion of the pressurized hydrocarbon treatment station, and we will continue to push forward the development of new wells, striving to achieve a 30% increase in annual production.
New energy segment will realize the upstream and downstream synergistic integration of industrial chain production, Buguni lithium mine strive to achieve more than 5.5% lithium concentrate production of 130,000 tons, and start the second phase of Buguni lithium mine development and construction planning; Star of the sea of lithium hydroxide project strive to reach 10,000 tons of annual output, and will focus on obtaining orders from overseas high-end customers to actively promote product certification work.

2025 is the final year of the company's “14th Five-Year Plan” strategic plan, the company will firmly established strategy, focusing on strategic “minerals + energy”, optimizing “industrial operations + industrial investment”. We will focus on strategic “minerals + energy”, optimize “industrial operation + industrial investment”, and strive to achieve greater breakthroughs and leaps on the journey of globalized industrial layout and green and intelligent transformation.