LINGBAO GOLD (HKEX: 03330) has announced a positive profit alert for the first half of the year.

The company projects revenue for the six months ending June 30, 2026, to be in the range of approximately RMB 7.9 billion to RMB 8.1 billion. This represents an increase of about 1% to 4% compared to the revenue of roughly RMB 7.793 billion for the same period ending June 30, 2025.

More significantly, the group forecasts a net profit for the period between RMB 950 million and RMB 1.05 billion. This marks a substantial year-on-year increase of approximately 42% to 57% from the net profit of about RMB 670 million recorded in the first half of 2025.

Key Drivers of Profit Growth

The company attributes the strong profit performance to several key factors. Firstly, it is due to stable production and operational progress in the first half of 2026, alongside the continued implementation of stringent cost-reduction and efficiency-enhancement measures. The increase in the price of its primary product, gold, compared to the same period in 2025, also contributed positively.

Secondly, the completion of the subscription for a 50%+1 share stake in St Barbara Mining Pty Ltd on April 2, 2026, has had a favorable impact. The core asset of the target company is the producing Simberi gold mine located in Papua New Guinea. The financial results of the target company have been consolidated into the group's financial statements since the transaction's completion, positively influencing the group's overall performance.

Thirdly, the group's net profit for the first quarter of 2026 was significantly offset by non-cash accounting items. These included an approximate RMB 260 million loss from the fair value change of convertible bonds and related financial expenses, including imputed interest, of about RMB 22.11 million. The board emphasized that these are non-cash items arising solely from the application and compliance with relevant accounting standards. They do not involve any cash outflow and do not reflect the group's underlying core operational performance.