Persistence Resources Group (2489) Q1 2024 earnings summary

Executive summary

• Q1 revenue rose 15.3% YoY to RMB109,224,000 and net profit increased 27.9% to RMB36,299,000, supported by higher gold selling prices and interest income.

• Gold output fell 4.4% to 220.4kg as underground mining paused temporarily in February; basic and diluted EPS was RMB0.02 versus RMB0.01.

Financial highlights

• Gross profit increased 21.6% to RMB57,547,000; gross margin reached 52.7%, compared with 49.9% in Q1 2023.

• Other income and gains rose 122.6% to RMB5,018,000, mainly from higher interest income; administrative expenses increased 43.7% to RMB9,843,000.

• Profit attributable to owners rose 28.8% to RMB26,167,000; finance costs declined 15.6% to RMB698,000.

Segment performance

• Gold production was 220.4kg (7,086.7 ounces), down 4.4% YoY; February output was affected by restricted explosive supply and underground staff taking Chinese New Year leave.

• Revenue increased 15.3% as the average selling price rose 17.3%, partly offset by a 1.7% decrease in sales volume.