Performance Hits New High, Chifeng Gold Chairman "Reflects" in Annual Report

Recently, Chifeng Gold (600988) (SH600988) released its 2025 annual report, delivering its best-ever historical performance with revenue exceeding 12.6 billion yuan and net profit increasing by nearly 75%.

However, before the release of this “strongest annual report,” Chifeng Gold has already experienced a change in control.

The company’s actual controller, Li Jinyang, is planning to transfer her shares. The widow of Zhao Meiguang, the company’s founder who inherited all his estate just over four years ago, chose to “retreat abruptly” during the peak of the company’s performance. At this sensitive moment, external speculation about her true intentions is difficult, but in the 2025 annual report, it is rare to see Chairman Wang Jianhua systematically summarize the past few years, with some emotional language and direct acknowledgment of issues. He stated in the report that if we strip away the benefits of rising gold prices, how substantial is the company’s internal growth? He also emphasized that dwelling on past achievements will not help solve future problems.

Company Releases “Strongest Annual Report”

On the evening of March 20, Chifeng Gold, a leading gold company with a market value exceeding 70 billion yuan, disclosed its 2025 annual report, which is considered the “strongest annual report” since the company’s founding.

In 2025, Chifeng Gold achieved operating revenue of 12.639 billion yuan, a year-on-year increase of 40.03%. Net profit attributable to shareholders of the listed company reached 3.082 billion yuan, up 74.70% from the previous year.

By industry, core mining operations generated revenue of 12.412 billion yuan, with a gross profit margin of 53.60%, an increase of 8.62 percentage points from the previous year. Notably, mineral gold performed exceptionally well, with revenue of 11.339 billion yuan and a gross profit margin of 58.51%, a significant increase of 11.55 percentage points year-over-year. On the cost side, the all-in sustaining cost (AISC) for mineral gold in 2025 was 372.63 yuan per gram, up 32.52% from the previous year.

As of the end of 2025, the company’s total assets reached 24.981 billion yuan, a 22.89% increase from the beginning of the year. Thanks to operational accumulation and funds raised through the Hong Kong stock market, the company’s debt-to-asset ratio significantly decreased from 47.25% at the start of the year to 33.91%, a drop of 13.34 percentage points. Interest-bearing debt was approximately 877 million yuan, down 67.45% from the beginning of the year. Net cash flow from operating activities was 5.556 billion yuan, a year-on-year increase of 69.97%.

In terms of main business revenue, about 71.20% came from overseas mines. Overseas regions generated revenue of 8.988 billion yuan with a gross profit margin of 45.85%; domestic regions contributed 3.635 billion yuan with a gross profit margin of 68.93%.

Chifeng Gold achieved both resource reserves and reserves growth in 2025. As of December 31, 2025, the company’s gold resources totaled 512 tons, a 31% increase from the end of 2024; gold reserves were 105.76 tons, up 41% year-over-year. In terms of production, mineral gold output in 2024 was 15.16 tons, ranking fifth nationwide.

Returning to the tasks mentioned in the 2025 annual report, the company’s gold production target for 2026 is 14.7 tons, and electrolytic copper is targeted at 11,000 tons. The company emphasizes that 2026 is a key year laying the foundation for a production surge between 2028 and 2030.

Previous Control Person Planned to Exit

While operational performance reached historic highs, the actual controller of Chifeng Gold chose to “retreat abruptly.” Before the release of the 2025 annual report, the company’s stock was suspended. Li Jinyang and her concerted parties are planning to transfer their shares, which may lead to a change in control.

Li Jinyang, 43 years old, is the widow of Zhao Meiguang, the founder of Chifeng Gold. Both are from Jilin City, Jilin Province. Zhao Meiguang passed away in December 2021 at age 59, with all his estate inherited by Li Jinyang, resulting in her becoming the actual controller of the company.

As of the third quarter of 2025, Li Jinyang and her concerted parties held a total of 12.73% of the shares. Based on a pre-suspension market value of 77.6 billion yuan, this stake is worth approximately 9.87 billion yuan.

In reality, Li Jinyang has rarely been involved in the company’s operations, emphasizing her full cooperation with the management team led by Chairman Wang Jianhua and obedience to the company’s strategic development plan. Since inheriting her shares, she has expressed a strong willingness to exit. Just three months after becoming the actual controller, in March 2022, she signed a share transfer agreement with a trust plan, proposing to transfer 5.77% of shares at 16.79 yuan per share, claiming this was to optimize the equity structure, introduce strategic investors, and raise funds to repay debts.

Chairman Reflects in Annual Report

Since the 2024 annual report, Chifeng Gold has added a chairman’s message section. Compared to the previous year, the 2025 message is more emotional and includes more reflections on the past.

In the 2024 report, Chairman Wang Jianhua focused on the organizational logic and benefit distribution mechanisms of the team. He briefly introduced the core team driving the company’s achievements, sharing their vision and philosophy.

He emphasized that the company has always been committed to “owners, operators, and workers working together and sharing results,” and has continuously promoted employee shareholding, allowing value-creating workers to participate in capital gains. He proposed that management should adhere to the principle of “zero privilege, zero profit from power,” prioritizing the highest treatment for frontline workers and fostering internal leadership to become true entrepreneurs.

In the 2025 report, Wang Jianhua repeatedly mentioned “releasing kindness” and regarded it as the greatest certainty in responding to external uncertainties. He clearly stated: “All changes in the company will revolve around ‘releasing kindness, everything for people’ as the main management theme.”

In terms of organizational governance, he said the company upholds the philosophy that management is about enabling the team to fully release kindness, despising indifference and privilege. Senior executives have long worked on the front lines of mines, living and eating with miners, and strictly enforce personal expense audits and supervision. He emphasized that norm, integrity, and righteousness should become normal and habitual, so that the company can become a long-term investment favorite.

Despite achieving a record high in net profit in 2025, Chairman Wang Jianhua demonstrated deep crisis awareness and systematic self-reflection during this performance surge.

He posed a reflection to management and investors: “If we strip away the benefits of rising gold prices, how substantial is our internal growth?” He warned the team that dwelling on past achievements is unhelpful for solving future problems. In 2026, the company still faces geopolitical, resource competition, and cost control challenges.

He reaffirmed the 2019-end established direction of “only investing in gold,” committed to being a focused and professional gold mining company. He lamented that divesting non-mining assets at that time was a “bold move,” but it was this resolve to “do long-term right things” that allowed the company to align with today’s gold price trend and prepare for larger fluctuations in the future. “Without extraordinary efficiency and benefit changes, it’s just coping; only significant changes mean we are dedicated and working hard.”

He concluded by stating that the company will continue to strive for substantial growth in operational performance, improve miners’ treatment, increase cash dividends, and share development results with shareholders and workers.

Public information shows Wang Jianhua was born in 1956, holds an MBA, and is a senior economist. His career is extensive, having led several industry-leading enterprises.

Early in his career, Wang served as General Manager and Party Secretary of Shandong Silk Import & Export Corporation. After entering the mining industry, he was Chairman and Party Secretary of Shandong Gold Group Co., Ltd. He was also appointed as Director and President of Zijin Mining Group Co., Ltd. (June 2013 to December 2016), and later served as Chairman of Yunnan Baiyao Holdings Co., Ltd. (April 2017 to May 2018). In September 2018, Wang joined Chifeng Gold as a director and has served as Chairman since December 2019.