Wanguo Gold Group (3939) investor relations material

Executive summary

• Revenue surged 68.5% year-over-year to RMB3,161.2 million, driven by strong gold prices and increased sales from Gold Ridge Mine.

• Gross profit rose 135.5% to RMB2,348.1 million, with gross margin expanding to 74.3% from 53.2% last year.

• Net profit attributable to owners increased 135.5% to RMB1,355.0 million; basic EPS was RMB31.04 cents.

• Gold Ridge Mine contributed significantly to revenue and profit growth, with gold doré and concentrate sales up 105.5%.

• Board recommended a final dividend of RMB10.10 cents per share; no special dividend proposed.

Financial highlights

• Cost of sales decreased 7.5% to RMB813.1 million, reflecting improved efficiency and cessation of trading other concentrates.

• Profit before tax increased 160.2% to RMB2,096.4 million.

• Net profit margin improved to 47.3% from 36.9% year-over-year.

• Cash and cash equivalents doubled to RMB1,025.3 million; current ratio rose to 5.24x.

• Gearing ratio dropped to 2.8% from 7.7% due to higher cash and lower borrowings.

Outlook and guidance

• Plans to expand mining capacity at Xinzhuang Mine to 900,000 tpa and continue outsourcing mining works.

• Focus on horizontal expansion via acquisitions and further exploration at Gold Ridge and Walege Mines.

• Positive outlook for gold and non-ferrous metals, supported by global monetary trends and central bank gold accumulation.