Soaring gold prices are rapidly translating into significant earnings benefits for listed gold producers. Western Region Gold Co.,Ltd. issued a preliminary earnings forecast for the first quarter of 2026, anticipating net profit attributable to shareholders to be between 450 million yuan and 560 million yuan. This represents a staggering year-on-year increase of 1161% to 1470% compared to the legally disclosed figure from the same period last year.
This performance, which exceeded expectations, is directly attributed to a simultaneous rise in both the sales volume and selling price of gold products, alongside a recovery in the price of electrolytic manganese. The company also disclosed that after deducting non-recurring gains and losses, net profit is projected to be between 440 million yuan and 570 million yuan, a year-on-year increase of 950% to 1261%. This indicates that the profit growth is primarily driven by substantial improvement in core business operations rather than one-off factors.
The significant profit growth was primarily fueled by core business operations: an increase in gold product sales volume and a rise in gold selling prices compared to the same period last year, coupled with an increase in the selling price of electrolytic manganese. A comparison with the base period data reveals that the company's net profit attributable to shareholders for the first quarter of 2025 was only 35.6753 million yuan, with a net profit after extraordinary items of 41.8959 million yuan. Calculating with the median of the current forecast, this quarter's net profit is approximately 14 times that of the same period last year.
The backdrop of this substantial earnings leap also involves the accounting impact of a merger and acquisition. The company completed the procedures for acquiring a 100% equity stake in Xinjiang Meisheng Mining Co., Ltd. from its controlling shareholder in August 2025 and has included the target company in its consolidated financial statements. In accordance with the accounting standards for business combinations under common control, the company has made retrospective adjustments to the prior year's comparable data.
After this retrospective adjustment, the net profit for the same period last year was revised downward from 35.6753 million yuan to 23.7197 million yuan. This adjustment further amplifies the growth rate compared to the adjusted prior-year figure—based on the retrospectively adjusted data, the net profit for the current quarter shows a year-on-year increase of 1797% to 2261%.
Comments