Wanguo Gold Group (3939) investor relations material

Executive summary

• Revenue rose 50.2% year-over-year to RMB1,863.3 million, driven by higher sales from Gold Ridge Mine, Xinzhuang Mine, and increased gold prices.

• Net profit increased 50.7% to RMB993.6 million, with net profit margin stable at 53.3%.

• Gross profit margin improved to 77.3% from 70.0% due to higher gold prices and improved product mix.

• Interim dividend of HK$0.06 per share declared, totaling RMB229.4 million.

Financial highlights

• Gross profit up 66.0% to RMB1,440.7 million; cost of sales increased 13.5% to RMB422.7 million.

• EBITDA increased 68.3% to RMB1,360.1 million year-over-year.

• Earnings per share: Basic RMB20.47 cents, Diluted RMB20.33 cents.

• Net cash from operating activities: RMB708.7 million; cash and cash equivalents at period end: RMB498.3 million.

• Gearing ratio decreased to 2.2% from 2.8% at year-end.

Outlook and guidance

• Xinzhuang Mine capacity upgrade to 900,000 tpa underway, with plans to reach 1,000,000 tpa.

• Gold Ridge Mine expansion progressing, with main equipment installation and power supply works on schedule.

• Focus on further acquisitions and resource expansion in PRC and South Pacific.

• Gold prices expected to remain volatile but supported by geopolitical risks and central bank demand.