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

Securities Daily reporter Li Jing

In recent days, listed companies in the gold industry chain have successively released their 2025 performance. Against the backdrop of 2025 gold prices continuing to break through and trade at high levels, the performance of related listed companies has generally risen. However, some companies have also seen their performance decline. Industry insiders believe that as gold prices fluctuate, performance differentiation among listed companies across the industry chain may further intensify.

Specifically, gold mining enterprises at the upstream end of the industry chain have become the biggest beneficiaries of the rise in gold prices. In its 2025 annual performance announcement, Zijin Mining Group Co., Ltd. reported that its full-year operating revenue was 349.08B yuan, up 14.96% year over year; its net profit attributable to shareholders was 51.78B yuan, up 61.55% year over year.

Chifeng Jilong Gold Mining Co., Ltd. also delivered impressive results. In 2025, it achieved operating revenue of 12.64B yuan, up 40.03% year over year; and net profit attributable to shareholders of 3.08B yuan, up 74.70% year over year.

Shandong Gold Mining Co., Ltd. expects net profit attributable to shareholders of 4.6 billion to 4.9 billion yuan in 2025, up 56% to 66% year over year; and non-recurring profit net of net profit of 4.8 billion to 5.1 billion yuan, up 60% to 71% year over year.

When Qu Fang, an investment adviser at Wanhui Securities, spoke with a reporter from Securities Daily, he said that upstream gold mining enterprises have typical resource attributes. Their mining costs are relatively rigid; when gold prices remain high, it directly translates into a significant increase in gross margin and net profit. Combined with continued expansion in production and increased reserve-taking by leading companies, this creates a high-growth pattern of coordinated growth in volume and price. With industry concentration improving further, leading enterprises with resource reserves and cost advantages have clearly outperformed in terms of earnings resilience and risk-resistance capacity.

In stark contrast to upstream mining firms, downstream gold jewelry retail performance is clearly differentiated. 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 52.82B yuan, down 6.99% year over year; and net profit attributable to shareholders was 1.76B yuan, down 9.99% year over year. In addition, Shenyang Cuihua Gold & Silver Jewelry Co., Ltd. and Zhejiang Mingpai Jewelry Co., Ltd. expect their 2025 performance to decline year over year or incur losses.

However, for some companies that focus on brand premiums and product differentiation, performance generally increased. Guangdong Chaohongji Industrial Co., Ltd. expects net profit of 436 million to 533 million yuan in 2025, up 125% to 175% year over year. Laopu Gold Co., Ltd. expects sales performance of about 31 billion to 32 billion yuan in 2025, up about 216% to 227% year over year; its adjusted net profit is about 5 billion to 5.1 billion yuan, up 233% to 240% year over year.

Qu Fang further analyzed that differentiation in the downstream retail sector is evident under the shock of high gold prices. Traditional gold jewelry companies face pressure on their performance. Companies that deploy branded and differentiated strategies have broken through against the trend, and the industry is accelerating its transition toward premiumization and branding.

Of note is that, recently, international gold prices have seen sharp volatility. Yang DLong, chief economist at Qianhai Open-Source Fund, told a reporter from Securities Daily that the geopolitical conflicts in this round have triggered chain reactions in the market. Rising inflation expectations have forced the Federal Reserve to delay rate cuts. In addition, profit-taking by holders accumulated from the sharp rise in gold prices earlier has centralized short-term price pullbacks, leading to a correction in prices in the short term.

Looking ahead, institutions remain optimistic about gold’s long-term trend. Shen Wan Guo Futures believes that concerns in the market about the sustainability of the U.S. fiscal situation 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 an upward trend over the long term.