Persistence Resources Group (2489) H1 2025 earnings summary

Executive summary

• H1 revenue rose 28.5% to RMB303.493m and net profit increased 8.4% to RMB85.501m; a 34.2% higher average gold selling price outweighed lower sales volume and 1.7% lower output

• Higher costs, administrative expenses and tax moderated profit growth; basic and diluted EPS rose 9.6% to RMB3.14 cents

Financial highlights

• Revenue was RMB303.493m versus RMB236.173m; sales volume decreased 4.3% while average selling price increased 34.2%

• Gross profit rose 23.9% to RMB155.511m; cost of sales increased 33.7% to RMB147.982m and gross margin eased to 51.2% from 53.1%

• Profit attributable to owners rose 9.6% to RMB62.762m from RMB57.284m; total comprehensive income was RMB84.049m versus RMB80.582m

• Profit before tax increased to RMB128.642m from RMB114.777m; income tax expense rose to RMB43.141m from RMB35.910m

• Administrative expenses rose 62.1% to RMB31.514m, reflecting soil and water conservation compensation, acquisition-related legal fees and higher R&D costs

Outlook and guidance

• Continued open-pit slope management and delays arranging contractors to remove excess waste rock may disrupt high-grade ore mining and reduce overall H2 output

• Denggezhuang Underground Mine completed corrective actions and awaited Safety Bureau clearance to resume; suspension costs were RMB3.671m, with no material results impact expected subject to resumption

• SRK is expected to recommend an optimized production utilization plan by end-2025 following analysis of exploration results and completed mining infrastructure work

• Gold prices may remain elevated but volatile in H2, supported by safe-haven demand, central-bank purchases and geopolitical risks