Persistence Gold Group Ltd (02489) reported FY25 revenue of RMB628.80 million, up 25.90% year on year, driven by a 37.7% rise in average gold selling prices that offset an 8.6% decline in sales volume.

Net profit eased 1.60% to RMB144.33 million, with profit attributable to shareholders improving 5.60% to RMB110.65 million. Basic and diluted EPS inched up 1.10% to RMB0.053. The board will not propose a final dividend.

Gross profit expanded 30.60% to RMB331.38 million, lifting the margin to 52.7% (FY24: 50.8%). Cost of sales increased 21.0% to RMB297.42 million, reflecting higher tailings processing fees, resources tax and inclusion of Yantai Mujin’s costs following its acquisition in February 2025.

Operating costs rose sharply: administrative expenses climbed 37.7% to RMB76.43 million, mainly due to Yantai Mujin’s consolidation and a July 2025 share-based payment of RMB4.29 million. Other expenses surged to RMB21.63 million (FY24: RMB1.70 million) on road demolition charges and suspension costs linked to safety-related shutdowns at Denggezhuang (July–September) and Songjiagou Underground (September–November).

Finance costs grew to RMB8.85 million (FY24: RMB2.46 million) after new bank borrowings associated with Yantai Mujin. The effective tax rate increased to 40.6% (FY24: 31.4%), lifting income-tax expense to RMB98.55 million.

Total assets almost doubled to RMB2.29 billion, supported by higher property, plant and equipment, mining rights and cash from an HK$464.30 million share placement completed in October 2025. Cash and cash equivalents stood at RMB1.09 billion (FY24: RMB639.60 million). Interest-bearing borrowings were RMB244.24 million, giving a gross gearing ratio of 15.3%.

Operationally, gold output slipped 6.3% to 847.4 kg (27,243 oz), reflecting safety-driven stoppages and slope-management work at Shandong mines. Exploration at Chahe Underground and infrastructure projects at Houzhuang-Heiniutai and Denggezhuang remain in progress.

Management expects production stability in 2026 following resumption of the affected mines and continues to evaluate overseas acquisition targets for the proceeds of the recent placement.