Shandong Gold Mining Co., Ltd. (SD-GOLD, 01787) reported solid top-line and earnings growth for the three months ended 31 March 2026, buoyed by stronger gold prices and tighter operational control despite a double-digit decline in production.

Revenue reached RMB 32.52 billion, up 25.37% year-on-year. Management attributed the expansion to “the increase in selling prices of self-produced and purchased gold” alongside enhanced production and operational management.

Total profit climbed 67.04% year-on-year to RMB 3.62 billion, while net profit attributable to shareholders rose 40.87% to RMB 1.45 billion. Basic earnings per share increased to RMB 0.29 from RMB 0.20. Excluding a RMB 122.37 million perpetual-bond coupon, net profit to ordinary shareholders stood at RMB 1.32 billion. Non-recurring items were a small net loss of RMB 16.90 million, leaving underlying net profit up 41.94%.

Operating cash flow more than doubled to RMB 6.10 billion, mainly driven by higher net inflows from trading activities, lifting cash and cash equivalents to RMB 18.71 billion at quarter-end (31 December 2025: RMB 15.99 billion). Total assets expanded 4.07% to RMB 177.31 billion, while equity attributable to shareholders grew 2.41% to RMB 45.98 billion.

Production volumes declined as SD-GOLD mined 9,538 kg of self-produced gold (-19.65% yoy) and sourced 11,063 kg of purchased gold (-45.33% yoy). Sales volumes fell more moderately—self-produced gold sales were 9,707 kg (-11.69%), while purchased gold sales dropped to 11,428 kg (-43.53%). Notably, sales of small gold bars jumped 82.81% to 5,211 kg, partially offsetting the lower volumes in other categories.

On the balance-sheet side, total liabilities stood at RMB 110.94 billion, resulting in a gearing ratio of roughly 62.6%. Short-term borrowings were broadly stable at RMB 29.23 billion, and long-term borrowings increased to RMB 22.70 billion.

Management highlighted improved operational efficiency and the favourable gold price environment as key profit drivers. The quarterly figures have not been audited and are prepared under China Accounting Standards for Business Enterprises.