Tongguan Gold Group Limited Issues Positive Profit Alert for FY2025

Key Highlights

• Anticipated Surge in Profit: Tongguan Gold Group Limited expects a record profit attributable to owners for the year ended 31 December 2025, ranging from HK\$820 million to HK\$840 million. This marks a substantial increase of approximately 289% to 298% compared to HK\$211 million for the previous year.
• Adjusted Profit Excluding Non-Operating Expenses: When excluding non-operating expenses—specifically HK\$55 million related to fair value changes on derivatives from convertible bonds and contingent consideration payables—the adjusted profit is forecasted to be between HK\$875 million and HK\$895 million. This represents an even higher year-on-year increase of approximately 315% to 324%.
• Drivers of Growth: The surge in profit is primarily attributed to increased production and sales volumes of mine-produced gold, coupled with a higher average selling price compared to 2024.

Important Information for Shareholders

• Potential Price Sensitivity: The announcement signals a significant improvement in the Group’s profitability, which is likely to be price-sensitive and could positively impact the share value.
• Non-Operating Expenses: The profit numbers include non-operating expenses of HK\$55 million, which are related to fair value changes in derivatives connected to convertible bonds and contingent consideration payables. Excluding these, the Group’s performance is even stronger.
• Preliminary Nature of Results: The profit figures are based on unaudited management accounts and are subject to change. The Company’s auditors and audit committee have not yet reviewed these numbers, and actual results may differ when finalised.
• Upcoming Annual Results Announcement: The official audited results for FY2025 are expected to be released around the end of March 2026.
• Board Composition: The Board currently comprises five executive directors and three independent non-executive directors, with Mr. Jiang Zhiyong serving as Chairman and Executive Director.
• Caution Advised: Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company until the final results are officially announced.

Detailed Analysis

Tongguan Gold Group Limited’s anticipated profit for FY2025 represents a dramatic turnaround and robust operational performance. The increase is driven by favourable market conditions, notably higher gold prices and increased production and sales volumes from the Group’s mining operations. Such a leap in profitability, especially when adjusted for non-operating expenses, indicates strong underlying business fundamentals and operational efficiency.

Investors should note that the preliminary figures have not undergone external audit or committee review, introducing an element of uncertainty. However, even if finalised results vary, the magnitude of the improvement suggests a potentially transformative year for the Group.

The announcement is made under Rule 13.09(2)(a) of the Hong Kong Listing Rules and the Inside Information Provisions, further underscoring its materiality and potential impact on share price. Given the scale of increase in profit, this news is likely to attract market attention and could result in significant share price movement.

Conclusion

Tongguan Gold Group Limited’s positive profit alert for FY2025 is highly newsworthy and likely to be price-sensitive. With adjusted profits expected to more than triple, driven by increased production and higher gold prices, shareholders and investors should closely monitor the Company’s forthcoming audited results for further confirmation and insights.

Disclaimer: The information presented is based on preliminary unaudited management accounts and is subject to change pending final audit and Board approval. Investors are advised to exercise caution and seek professional advice before making investment decisions. The actual results may differ from those stated in this article.

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