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

Securities Daily Reporter Li Jing

Recently, gold industry chain listed companies have successively released their performance for 2025. Against the backdrop of continuously breaking and high gold prices in 2025, the performance of related listed companies generally improved, although some companies experienced a decline in performance. Industry insiders believe that as gold prices fluctuate, the performance differentiation among industry chain listed companies may intensify.

Specifically, gold mining companies in the upstream of the industry chain have become the biggest beneficiaries of rising gold prices. Zijin Mining Group Co., Ltd. announced its 2025 annual performance report, showing that the company achieved an annual operating revenue of 349.079 billion yuan, a year-on-year increase of 14.96%; achieving a net profit attributable to shareholders of 51.777 billion yuan, a year-on-year increase of 61.55%.

Chifeng Jilong Gold Mining Co., Ltd. also reported impressive performance, achieving an operating revenue of 12.639 billion yuan in 2025, a year-on-year increase of 40.03%; achieving a net profit attributable to shareholders of 3.082 billion yuan, a year-on-year increase of 74.70%.

Shandong Gold Mining Co., Ltd. expects to achieve a net profit attributable to shareholders of 4.6 billion to 4.9 billion yuan in 2025, a year-on-year increase of 56% to 66%; achieving a net profit attributable to shareholders after deducting non-recurring gains and losses of 4.8 billion to 5.1 billion yuan, a year-on-year increase of 60% to 71%.

Qu Fang, an investment advisor at Wanlian Securities, stated in an interview with Securities Daily that upstream gold mining companies have typical resource attributes, with relatively rigid mining costs, and high gold prices directly translate into significant increases in gross margins and net profits, coupled with leading companies continuously expanding production and reserves, achieving a high growth pattern of both volume and price. The industry’s concentration further increases, and leading companies with resource reserves and cost advantages significantly outperform in profitability elasticity and risk resistance.

In stark contrast to upstream mining companies, downstream gold jewelry retail performance shows significant differentiation. The traditional gold jewelry leader Lao Feng Xiang Co., Ltd. reported in its performance announcement that the company achieved revenue of 52.823 billion yuan in 2025, a year-on-year decrease of 6.99%; net profit attributable to shareholders was 1.755 billion yuan, a year-on-year decline of 9.99%. Additionally, Shenyang Cuihua Gold and Silver Jewelry Co., Ltd. and Zhejiang Mingpai Jewelry Co., Ltd. expect their 2025 performance to decline year-on-year or incur losses.

However, some companies that focus on brand premium and product differentiation generally report growth in performance. Guangdong Chao Hong Ji Industrial Co., Ltd. expects to achieve a net profit of 436 million to 533 million yuan in 2025, a year-on-year increase of 125% to 175%. Laopu Gold Co., Ltd. expects to achieve sales performance of approximately 31 billion to 32 billion yuan in 2025, a year-on-year increase of approximately 216% to 227%; adjusted net profit is expected to be approximately 5 billion to 5.1 billion yuan, a year-on-year increase of 233% to 240%.

Qu Fang further analyzed that the downstream retail industry is significantly differentiated due to the impact of high gold prices, with traditional gold jewelry companies facing performance pressure, while companies with branding and differentiation strategies are breaking through against the trend, and the industry is accelerating its transformation towards premium and branding.

It is worth noting that recently, international gold prices have been highly volatile. Yang Delong, chief economist of Qianhai Kaiyuan Fund, told Securities Daily that the current round of geopolitical conflicts has triggered a chain reaction in the market, with rising inflation expectations forcing the Federal Reserve to delay interest rate cuts, combined with the profit-taking accumulated from earlier significant increases in gold prices, leading to short-term price corrections.

Looking ahead, institutions remain optimistic about the long-term trend of gold. Shenwan Hongyuan Futures believes that concerns about the sustainability of U.S. fiscal policy are still intensifying, coupled with the reconstruction of the global political and economic order and the diversification of global central bank reserve assets, gold is expected to maintain a long-term upward trend.