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

Securities Daily reporter Li Jing

In recent times, listed companies along the gold industry chain have successively released their 2025 performance results. Against the backdrop of gold prices continuing to break higher and remain at high levels in 2025, the performance of related listed companies has generally risen, but some companies have also seen their performance decline. Industry insiders believe that with gold prices fluctuating, performance differentiation among listed companies in the industry chain may further intensify.

Specifically, gold mining enterprises at the upstream of the industry chain have become the biggest beneficiaries of the rise in gold prices. An announcement of 2025 annual results released by Zijin Mining Group Co., Ltd. shows that for the full year, the company achieved operating revenue of RMB 3490.79 billion, up 14.96% year over year; it achieved attributable net profit of RMB 517.77 billion, up sharply 61.55% year over year.

Chifeng Jilong Gold Mining Co., Ltd. has also posted impressive results. In 2025, it achieved operating revenue of RMB 126.39 billion, up 40.03% year over year; it achieved attributable net profit of RMB 30.82 billion, up 74.70% year over year.

Shandong Gold Mining Co., Ltd. expects that in 2025, attributable net profit will be RMB 46 billion to RMB 49 billion, up 56% to 66% year over year; adjusted non-recurring net profit will be RMB 48 billion to RMB 51 billion, up 60% to 71% year over year.

Qu Fang, an investment consultant at Wanlian Securities, said in an interview with a reporter from Securities Daily that upstream gold mining enterprises have typical resource attributes. Their mining costs are relatively rigid; when gold prices are running at high levels, it directly translates into a substantial increase in gross margin and net profit. Coupled with leading enterprises continuing to expand production capacity and increase reserves, the industry is forming a high-growth pattern in which both volume and price rise at the same time. Industry concentration continues to improve, and leading companies with resource reserve and cost advantages are significantly ahead in terms of earnings elasticity and resilience to risks.

In sharp contrast to upstream mining enterprises, the performance of downstream gold jewelry retail businesses shows clear differentiation. The performance quick report released by Lao Feng Xiang Co., Ltd., a traditional gold jewelry leader, shows that in 2025 the company achieved revenue of RMB 528.23 billion, down 6.99% year over year; attributable net profit was RMB 17.55 billion, 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 their 2025 performance decline year over year or incur losses.

However, the performance of some companies that focus on brand premiumization and product differentiation has generally increased. Guangdong Chaohongji Industrial Co., Ltd. expects that it will achieve net profit of RMB 4.36 billion to RMB 5.33 billion in 2025, up 125% to 175% year over year. Laopu Gold Co., Ltd. expects that in 2025, its sales performance will be approximately RMB 310 billion to RMB 320 billion, up approximately 216% to 227% year over year; its adjusted net profit will be approximately RMB 50 billion to RMB 51 billion, up 233% to 240% year over year.

Qu Fang further analyzed that in the downstream retail sector, the high gold price has caused clear differentiation. Traditional gold jewelry companies are under pressure on their performance, while companies that have adopted branding and differentiated layouts have broken through despite the headwinds, and the industry is accelerating its transition toward premiumization and branding.

What is worth noting is that recently, international gold prices have swung violently. In an interview with a reporter from Securities Daily, Yang Deyong, chief economist of Qianhai Open-Source Fund, said that this round of geopolitical conflicts has triggered a chain reaction in the market. Rising inflation expectations have forced the Federal Reserve to postpone rate cuts, and in addition, the profit-taking has been concentrated from the gains accumulated from the sharp rise in gold prices earlier, leading to a short-term pullback in prices.

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