Tongguan Gold (00340) has issued a positive profit alert, projecting a significant increase in its financial performance for the first half of the fiscal year.

The company anticipates reporting a profit attributable to equity holders of approximately HK$510 million to HK$530 million for the six months ending June 30, 2026. This represents a substantial rise of about 49% to 55% compared to the HK$343 million recorded in the same period of 2025.

The forecasted profit for the interim period includes a one-off income tax expense of roughly HK$95 million related to the 2025 fiscal year. This charge resulted from a subsidiary, which previously benefited from a preferential tax policy for high-tech enterprises, receiving a notification from the tax authorities on August 7, 2026, leading to a tax back-payment requirement.

Excluding this one-off tax impact, Tongguan Gold's adjusted profit attributable to equity holders for the interim period is expected to be between HK$605 million and HK$625 million. This would mark a robust increase of approximately 76% to 82% from the HK$343 million reported in the same period last year.

The primary driver for the expected profit growth is the company's improved average selling prices when compared to the corresponding period in 2025.