On the evening of August 18, Shanjin International Gold Co.,Ltd. released its 2025 interim report. During the first half of the year, against the backdrop of continuously rising gold prices, the company leveraged its high-grade mining resources and accurately captured market opportunities, extending the strong growth momentum from the first quarter, with both revenue and profit reaching historical highs for the same period.
During the reporting period, the company achieved operating revenue of 92.46 billion yuan, up 42.14% year-on-year; net profit attributable to listed company shareholders reached 15.96 billion yuan, up 48.43% year-on-year; and net cash flow from operating activities totaled 26.19 billion yuan, up 28.21% year-on-year.
The company's performance growth benefited from the synergistic effects of internal and external factors. From an external environment perspective, the global gold market performed strongly in the first half of 2025, with London spot gold prices accumulating a 25.84% increase, marking the largest half-year gain since 2008. The domestic market maintained similar momentum, with the Shanghai Gold Exchange Au9999 gold weighted average price rising 41.07% year-on-year in the first half.
Relying on its large-scale, high-grade precious metal mines, the company demonstrated significant cost advantages during the gold price uptrend, with core product profitability substantially improving. The company's ore has high average grades and operates six mining enterprises: Heihe Luoke, Jilin Banmiaozi, Qinghai Dachaidan, Yulong Mining, Huasheng Gold Mine, and Osino. Among these, Heihe Luoke Dong'an Gold Mine is one of the highest-grade and most easily processed gold mines in China; Qinghai Dachaidan is located within the Qilian-Kunlun metallogenic belt on the northern margin of the Qaidam Basin, covering a large mining area where recent geological exploration has achieved significant breakthroughs, with controlled ore bodies showing substantial thickness, high grades, and large resource reserves.
During the reporting period, the company fully leveraged its resource advantages, achieving gross profit margins of 79.15% and 55.20% for mined gold and silver respectively, representing increases of 7.26 and 6.03 percentage points compared to the same period last year.
Meanwhile, the company achieved breakthroughs in efficiency enhancement and profit creation. Through systematic innovation, production efficiency and comprehensive resource utilization improved significantly. Specifically, Yulong Mining successfully implemented intelligent paste backfill technology for full tailings in high-altitude regions, enhancing production efficiency and reducing ore dilution rates. The company innovatively adopted a two-step excavation method of "long-distance tunnel small cross-section breakthrough + secondary large cross-section formation," significantly improving efficiency. Qinghai Dachaidan optimized underground stope panel design, recovering an additional 13,000 tons of ore with an average grade of 2.48 grams per ton, effectively increasing enterprise benefits. Jilin Banmiaozi optimized mineral processing flows, achieving "more crushing, less grinding," and processed an additional 26,000 tons of raw ore. The application of rock powder drilling technology enabled precise delineation of ore body boundaries, saving mining and processing costs.
In terms of resource expansion, Shanjin International adhered to a dual-driven approach of "reserve increase and acquisition," achieving significant results. In the first half, geological exploration at the deep sections of Qinghai Dachaidan Qinglonggou Gold Mine and the periphery of Dong'an Gold Mine showed remarkable progress, with geological exploration adding 3.85 tons of new gold metal reserves at a grade of 5.79 grams per ton. To strengthen resource reserves, the company successfully acquired a 52.07% stake in Yunnan Western Mining Co., Ltd. in January 2025, obtaining gold exploration rights covering 35.6 square kilometers in the Dagangba area. Simultaneously, the company's controlling subsidiary completed the acquisition of gold and polymetallic mineral exploration rights covering 20.38 square kilometers in the Mengwen area of Luxi City, Yunnan Province.
Overseas expansion is also progressing simultaneously. The Namibian Osino company project acquired by the company last year is proceeding smoothly, with concentrator construction scheduled to commence fully in the fourth quarter of this year and expected to be completed and commissioned in the first half of 2027. This project is expected to become an important overseas growth driver for the company's future development.
Notably, Shanjin International officially announced on June 19, 2025, the commencement of preliminary preparations for H-share issuance. This initiative represents a crucial step in the company's acceleration of international capital operations, aimed at further deepening global strategic positioning, accelerating overseas business development, consolidating industry-leading position, while optimizing capital structure, expanding diversified financing channels, and enhancing corporate governance and core competitiveness.
During the reporting period, the company's brand value continued to improve. The company released a high-quality 2024 ESG report, with its WIND ESG rating upgraded to A level, providing a benchmark for green and sustainable development in the mining industry. The company actively strengthened investor communication and earnestly fulfilled its responsibilities as a listed company. Additionally, the company received the "Golden Wisdom Award" Outstanding ESG Practice Excellence Case Award and the 16th "China Listed Company Investor Relations Management Pegasus Award," further enhancing brand image and market influence.
Minsheng Securities noted that gold's value as a reserve asset is increasingly evident. Catalyzed by recent international trade frictions, global public health events, geopolitical situations, and challenges to the US dollar's international status, gold's importance as a reserve asset has become increasingly prominent. Under the trend of global official reserve expansion and increasing gold allocation ratios, the value of gold as a reserve asset is expected to rise further.
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