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In 2025, when gold prices hit historic highs, Shandong Gold delivered a "double growth in volume and price" report card: Annual operating revenue reached 104.287 billion yuan, up 26.38% year-on-year; net profit attributable to shareholders was 4.739 billion yuan, up 60.57% year-on-year; net profit attributable to shareholders excluding non-recurring items was 4.993 billion yuan, up 66.91% year-on-year, showing significant profit elasticity.

From an operational perspective, growth in mined gold production became another main thread: The company produced 48.89 tons of mined gold in 2025, an increase of 5.89% year-on-year. Overseas mine production was 12.58 tons, a substantial increase of 60.20% year-on-year, with its proportion in total production having risen significantly, becoming the core source of increment; domestic mines produced 36.31 tons in total, essentially flat year-on-year, maintaining the company's leading position in the domestic market.

For shareholder returns, the company plans to distribute a cash dividend of 1.80 yuan per 10 shares (tax included) to all shareholders. Coupled with the interim dividend already distributed in October 2025 (1.7467 yuan per 10 shares), the total annual cash dividend amounts to 3.5467 yuan per 10 shares, with a total payout of 1.635 billion yuan, accounting for 38.63% of net profit attributable to ordinary shareholders after deducting perpetual bond interest in 2025.

Revenue breaks 100 billion, profits grow faster, non-recurring profit surpasses net profit attributable to shareholders

Driven by rising gold prices and expanding production, the company’s 2025 revenue and profits both increased, but profit growth outpaced revenue:

• Operating revenue: 104.287 billion yuan (+26.38%)
• Total profits: 9.089 billion yuan (+59.95%)
• Net profit attributable to shareholders: 4.739 billion yuan (+60.57%)
• Net profit attributable to shareholders excluding non-recurring items: 4.993 billion yuan (+66.91%)

Noteworthy is that net profit excluding non-recurring items is higher than net profit attributable to shareholders, meaning that non-recurring gains and losses had a net drag on the latter during the reporting period—profits are of relatively higher "quality". Based on a rough calculation of net profit attributable to shareholders/operating revenue, the company’s net profit margin in 2025 is about 4.5%, up from about 3.6% in 2024.

Quarterly performance: Second quarter reaches a peak, fourth quarter pulls back, profitability fluctuates with non-recurring gains and losses

Quarterly data shows that profitability peaked in the second quarter of 2025:

• Q1: Revenue 25.935 billion yuan; net profit attributable to shareholders 1.026 billion yuan
• Q2: Revenue 30.830 billion yuan; net profit attributable to shareholders 1.782 billion yuan (highest single quarter of the year)
• Q3: Revenue 27.017 billion yuan; net profit attributable to shareholders 1.148 billion yuan
• Q4: Revenue 20.504 billion yuan; net profit attributable to shareholders 783 million yuan (lowest single quarter of the year)

Excluding non-recurring gains and losses, Q4 net profit excluding non-recurring items was 1.048 billion yuan, notably higher than Q4 net profit attributable to shareholders, further confirming the impact of non-recurring gains and losses on the profit statement. In terms of cash flow, operating net cash flow was outstanding in both Q2 and Q4 (about 7.977 billion yuan and 6.297 billion yuan respectively), supporting annual cash generation.

Production and structure: Annual mined gold 48.89 tons, overseas contribution becomes growth "engine"

The company produced 48.89 tons of mined gold in 2025, up 2.72 tons from the previous year. The increment mainly came from overseas:

• Domestic mines: 36.31 tons, basically flat year-on-year
• Overseas mines: 12.58 tons, up 4.73 tons year-on-year (+60.20%)

The company disclosed that the number of domestic and overseas mines producing more than 1 ton of gold annually reached 13. Based on mine output, domestic core mines include Sanshandao Gold Mine (7,171 kg), Jiaojia Gold Mine (5,550 kg), Xincheng Gold Mine (4,700 kg), etc.; overseas output mainly comes from Beradero Gold Mine (in accordance with 50% consolidated reporting: 7,157 kg) and Katino (5,424 kg).

The company attributes domestic growth to breakthroughs in follow-up projects at Sanshandao, Jinzhou, Guilaizhuang, which enhanced capacity, as well as the resumption of production at Linglong Mining Area, technical transformation at Changtai Mining releasing capacity, and improved ore grades at some mines.

Dividends and shareholding structure: Two cash payouts totaling 1.635 billion yuan, payout rate nearly 40%

The board approved the 2025 profit distribution plan: a cash payout of 1.80 yuan per 10 shares (tax included). With the 2025 interim dividend (1.7467 yuan per 10 shares) already paid, total annual cash dividend is 3.5467 yuan per 10 shares, totaling 1.635 billion yuan, accounting for 38.63% of net profit attributable to ordinary shareholders after deducting perpetual bond interest.

As for shareholding structure, as of the end of the reporting period, Shandong Gold Group Co., Ltd., the controlling shareholder, held 35.17% of shares; H-share related holders, Hong Kong Central Clearing (Agent) Ltd. held 21.59%. The total number of ordinary shareholders at the end of the reporting period was 121,661, while by the month before the announcement date of the annual report, the number had risen to 176,568, with increased shareholding activity.

As of the date the annual report was approved, the company's outstanding corporate bonds include two perpetual bonds and multiple sci-tech bonds, with a total balance of about 8 billion yuan, and coupon rates around 2.12%—3.22%. Among them, the two 2023 sci-tech perpetual bonds use a three-year interest cycle, and the company may choose to renew or redeem at maturity, providing more flexible duration arrangements for expansion and overseas project development.

Parallel operation of Jiaodong base and overseas projects, deep mining and “waste-free mines” implementation accelerates

Strategically, the company is speeding up the construction of world-class gold production bases in Jiaodong (Jiaojia, Xincheng, Sanshandao, etc.), and the Twin Hills gold project in Namibia via Osino, and advancing Katino Namutoni Gold Mine and Changtai Mining’s ramp-up.

On the technology side, in 2025 the company won one provincial Science and Technology Progress Award and led or participated in the formulation of nine standards; in terms of engineering capability, the company reported the successful construction of Sanshandao Gold Mine’s 2,000-meter deep auxiliary shaft (Asia’s deepest large-diameter vertical shaft), enhancing deep resource development capability.

In green and safety aspects, the company pushed forward the three-year safety production improvement campaign and made progress in tailings resource utilization—the “Xinhui flotation tailings sand backfill Black Sheep Hill project” was listed as Shandong’s first batch of tailings utilization pilot for large solid waste backfill; Sanshandao Gold Mine and six other units were awarded “waste-free mine” and “waste-free factory” titles at the municipal level.

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