Chinese industrial firms interim profit reports

Chinese industrial firms Zijin Mining and Sinopec have reported increased interim profits for the first half of 2026, largely driven by high commodity prices.

Zijin Mining reported an interim profit of 39.17 billion yuan, a 68.2% year-on-year increase, with gold business revenue accounting for 41.2% of total revenue. However, the company noted production pressure for copper following an incident at the Kamoa-Kakula mine, which led to a downward revision of its copper production target.

Sinopec reported a net profit of approximately 25.63 billion to 26.567 billion yuan, representing a year-on-year increase of 11.9% to 19.3% depending on accounting standards used. Despite processing 5.6% less crude oil and facing inventory write-downs of 16 billion yuan due to price volatility, the company saw its refining margin rise significantly. Sinopec attributed its performance to diversifying crude oil sourcing outside the Middle East—looking toward regions such as Brazil and Africa—and optimizing its product mix, while noting ongoing uncertainty regarding international crude oil prices due to geopolitical factors and supply disruptions in the Strait of Hormuz.

To address shifting demand, Sinopec plans to invest over 30 billion yuan in new energy and new materials between 2026 and 2030. For the second half of the year, the company aims to increase its exploration and production output and process 113 million tonnes of crude oil.