Performance divergence among listed companies in the gold industry chain may intensify

Securities Daily reporter Li Jing

In recent times, listed companies in the gold industry chain have been releasing their 2025 performance updates one after another. Against the backdrop of gold prices continuing to break through and remain at high levels in 2025, the performance of related listed companies has generally risen, but some companies’ performance has also declined. Industry insiders believe that as gold prices fluctuate, the performance differentiation among listed companies across the industry chain may intensify.

Specifically, gold mining companies at the upper end of the industry chain have become the biggest beneficiaries of the rise in gold prices. A performance announcement released by Zijin Mining Group Co., Ltd. shows that the company recorded full-year operating revenue of RMB 349.08B, up 14.96% year over year; and attributable net profit to the parent company of RMB 51.78B, up sharply 61.55% year over year.

Chifeng Jilong Gold Mining Co., Ltd. has also reported impressive results. For 2025, it achieved operating revenue of RMB 12.64B, up 40.03%; and attributable net profit to the parent company of RMB 3.08B, up 74.70%.

Shandong Gold Mining Co., Ltd. expects that for 2025 it will achieve attributable net profit of RMB 4.6 billion to RMB 4.9 billion, up 56% to 66% year over year; and non-recurring profit/loss adjusted net profit of RMB 4.8 billion to RMB 5.1 billion, up 60% to 71% year over year.

When Qu Fang, an investment adviser at Union Securities, was interviewed by a reporter from Securities Daily, he said that upper-stream gold mining companies have typical resource attributes. Their mining costs are relatively rigid, so when gold prices run at high levels, this directly translates into a significant improvement in gross margin and net profit. Combined with top enterprises continuously expanding production capacity and increasing reserves, it forms a high-growth pattern with both volume and price rising together. Industry concentration is further increasing, and leading companies with resource reserves and cost advantages show clearly superior earnings leverage and resilience against risks.

In sharp contrast to upper-stream mining companies, the performance of downstream gold jewelry retail businesses is showing obvious differentiation. A performance brief released by Laofengxiang Co., Ltd., a traditional gold jewelry leader, shows that in 2025 the company achieved revenue of RMB 52.82B, down 6.99% year over year; and attributable net profit of RMB 1.76B, down 9.99% year over year. In addition, Shenyang Cuihua Gold and Silver Jewelry Co., Ltd. and Zhejiang Mingpai Jewelry Co., Ltd. are expected to see year-over-year declines in performance in 2025 or losses.

However, some companies that focus on brand premium and product differentiation are generally seeing growth in performance. Guangdong Chaohongji Industrial Co., Ltd. expects net profit of RMB 436 million to RMB 533 million in 2025, up 125% to 175% year over year. Lao Pu Gold Co., Ltd. expects sales performance of approximately RMB 31.0 billion to RMB 32.0 billion in 2025, up about 216% to 227% year over year; and adjusted net profit of approximately RMB 5.0 billion to RMB 5.1 billion, up 233% to 240% year over year.

Qu Fang further analyzed that in the downstream retail industry, differentiation is clearly driven by the shock from high gold prices. Traditional gold jewelry companies are under pressure, while companies that adopt brand-based and differentiated positioning have broken through against the trend. The industry is accelerating its transition toward premiumization and branding.

Worth noting is that recently, international gold prices have been swinging violently. Yang Delong, chief economist at Qianhai Open-Source Fund, told Securities Daily reporters that this round of geopolitical conflicts has triggered chain reactions in the market. Rising inflation expectations have forced the Federal Reserve to postpone interest rate cuts. At the same time, profit-taking consolidated from gains accumulated after the prior large surge in gold prices has led to a short-term price pullback.

Looking ahead, institutions remain optimistic about gold’s long-term outlook. Shen Wan Guo Futures Co., Ltd. believes that concerns about the United States’ fiscal sustainability are still intensifying in the market. Combined with the global reconfiguration of political and economic order and the diversification of global central bank reserve assets, gold is expected to maintain a long-term upward trend.