Business Review
In the first half of 2025, global economic and political conditions remained unstable. The U.S. government introduced tariff-based trade policies, and rising concerns over its debt and fiscal deficit created uncertainty in financial markets. Amid this backdrop, gold emerged as a highly attractive safe-haven asset, offering stability and becoming a key support for capital markets. The Group proactively responded to these circumstances and efficiently managed production, resulting in strong performance and demonstrating strong resilience and competitiveness in a challenging global environment. In line with our long-term strategic vision, we are shifting our business strategy from diversification to focusing on high-return gold mining operations, further strengthening our market position. As a result, profit attributable to shareholders recorded a remarkable 273% growth when compared with last period reflecting the success of our strategic realignment.
In January 2025, we completed a vertical integration acquisition of Huasheng Construction Investment Limited that enhanced cost efficiency and reinforced safety management across our production line in Tongguan County. On 7 March 2025, we announced a horizontal acquisition of Wise Trend Investment Limited. This deal is expected to expand the Group’s mineral reserves in Subei County and support its sustainable development strategy. As published in the announcement dated 2 June 2025, we entered into a Streaming Agreement with Zijin Metal Company Limited, opening new funding channels to support our business expansion in Subei County.
We continue to promote safe production, environmental protection, and community engagement. This includes providing a safe and healthy working environment, improving employee training, upgrading underground mining and processing equipment with automation, and developing 3D geological and equipment models. We also monitor waste treatment and pollution control measures and actively participate in community donations and events to support local development.
Prospects
As of August 2025, gold prices remain near historic highs, supported by a weakening U.S. dollar, expectations of interest rate cuts, and growing risks of stagflation or economic recession. These macroeconomic factors, coupled with increasingly volatile geopolitical and geoeconomic conditions as mentioned before, have further solidified gold’s role as a safe-haven asset. This has attracted sustained demand from both institutional investors and central banks, reinforcing the strategic importance of our core business. Given the favorable macro environment, our Group will continue to implement strategic measures to improve competitiveness and resource reserves. First, we are actively applying for exploration-to-mining licenses, especially in Tongguan County, to expand growth potential. Second, we speed up exploration to unlock the hidden value of mining areas located in favorable mineralization environments. Third, we continue to seek to acquire high-quality gold assets both locally and internationally to strengthen our mining portfolio.
External support has further validated the market’s confidence in the Group’s value and strategic direction. The capital injections from Zijin Metal Company Limited and strategic investors in April 2025, along with the signing of the aforementioned Streaming Agreement, further highlights the strong recognition of the Group’s resource quality, regulatory compliance, and technical capabilities. The capital injection will be used in Subei County to develop the production line and increase its production capacity, expand drilling operations, and promote green mine development to unlock new growth opportunities and maximize long-term value. In addition, inclusion in the MSCI Global Small Cap Index this month would enhance the Group’s visibility and appeal in international capital markets, helping to broaden its investor base and reinforce its reputation as a credible and investable enterprise.
Facing the changing macro environment, we will continue to stay agile and grow steadily, driving the Group’s business toward a new stage of high-quality and sustainable development, laying a solid foundation for long-term value creation.
