Mount Everest Gold Group Issues Significant Positive Profit Alert for FY2025

Key Developments and Financial Turnaround

Mount Everest Gold Group Company Limited (Stock Code: 1815) has released a Positive Profit Alert that signals a substantial turnaround in its financial performance for the year ended 31 December 2025 (FY2025).

• Expected Net Profit: The Group anticipates reporting a net profit attributable to shareholders of between RMB95 million and RMB110 million for FY2025. This represents a dramatic rebound compared to a net loss of approximately RMB23 million in FY2024.
• Excluding Employee Share Option Expenses: When excluding the impact of employee share option-related expenses, the net profit would have been even higher, in the range of RMB151 million to RMB166 million for FY2025.
• Employee Share Option Expenses: The Group incurred an expense of approximately RMB56 million in FY2025 due to the grant of share options to employees.

Factors Behind the Turnaround

• Robust Growth in Gold & Silver Product Sales: The primary driver of improved profitability is a significant increase in revenue from the sale of gold and silver products. The Group benefited from selling inventory that was procured at relatively low costs, while gold prices surged in 2025. This combination resulted in a substantial rise in gross profit margins within the New Jewellery Retail segment, which is expected to see a noteworthy profit boost compared to the previous year.
• Strategic Disposal of Non-Core Segment: The Group completed the disposal of its Fresh Food Retail segment in January 2025, generating a one-time gain of approximately RMB41 million. This strategic move allowed the Company to focus on its core business and contributed positively to overall profitability.
• Offsetting Factors: The profit gains were partially offset by the aforementioned employee share option expenses, which were carried at fair value.

Important Information for Shareholders

Shareholders and potential investors should note the following price-sensitive information:

• The anticipated net profit marks a major turnaround from the previous year’s loss, highlighting successful strategic initiatives and favorable market conditions for gold products.
• The disposal of the Fresh Food Retail segment is likely to further streamline operations and could result in a more focused and profitable business model going forward.
• The expenses related to employee share options are non-recurring and, if excluded, signal an even stronger underlying profitability.
• These financial results are based on unaudited management accounts and are subject to possible adjustment following audit review.
• The final audited results for FY2025 are expected to be published by the end of March 2026.

Board and Management

The Board is chaired by Mr. Chen He, with executive directors Mr. Qian Pengcheng and Ms. Huang Wen, and independent non-executive directors Mr. Yu Leung Fai, Mr. Hu Qilin, and Mr. Zhang Zuhui.

Investor Advisory

Shareholders and potential investors are strongly advised to exercise caution when dealing in the securities of the Company, as the results are not yet audited and may be subject to further changes.

Disclaimer: The above article is for informational purposes only and does not constitute investment advice. Investors should review the official results announcement when published and consider their own circumstances before making investment decisions. The Company’s financial data is currently unaudited and subject to change.

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