Gold prices rise combined with increased sales, Western Gold expects a net profit increase of about 1300% in the first quarter | Financial report news

Gold prices have been running at a high level for a sustained period, and the resulting performance dividends for listed gold companies are being realized quickly.

Western Gold released a first-quarter 2026 performance increase announcement on Tuesday, expecting net profit attributable to owners of the parent company to be 450 million yuan to 560 million yuan. Compared with the legally disclosed data for the same period last year, the year-on-year increase is 1161% to 1470%.

This growth that exceeds expectations directly benefits from a simultaneous rise in both gold product sales volume and sales prices, as well as the rebound in electrolytic manganese prices.

The company also disclosed that net profit after deducting non-recurring gains and losses is expected to be 440 million yuan to 570 million yuan, representing a year-on-year increase of 950% to 1261%. This shows that the growth in performance mainly comes from substantive improvements in the core business, rather than being driven by one-time factors.

Double-wheel Drive from Production/Sales and Prices

In the announcement, Western Gold clearly stated that the core driving force behind the sharp increase in net profit this quarter comes from the main business level: gold product sales volume increased compared with the same period last year, sales prices rose compared with the same period last year, and the sales price of electrolytic manganese also increased compared with the same period last year.

Judging from the base-period data, the company’s net profit attributable to owners of the parent in the first quarter of 2025 (legally disclosed data) was only 35.6753 million yuan, and the net profit after excluding non-recurring items was 41.8959 million yuan. Based on the median in this forecast, net profit for this quarter is about 14 times that of the same period last year.

Acquisitions and Reorganization Expand the Scope of the Consolidated Statements

The background to the large jump in performance also involves the impact of accounting treatment of an acquisition. The company completed the relevant procedures in August 2025 to purchase 100% of the equity of Xinjiang Meisheng Mining Co., Ltd. from its controlling shareholder, and included this target in the scope of the consolidated financial statements.

Pursuant to the provisions of the “Enterprise Accounting Standards” on business combinations under common control, the company made retrospective adjustments to the data for the same period last year.

After the retrospective adjustment, net profit for the same period last year was reduced from 35.6753 million yuan to 23.7197 million yuan, further expanding the growth range between this period and the same period last year. Based on the figures after the retrospective adjustment, the year-on-year increase in net profit for this quarter reaches 1797% to 2261%.

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