Zhongjin Gold Corp.: Net profit jumped 39.18% year-over-year on strong gold prices, despite lower cash flow

By Sherry Qin

Chinese gold-mining stocks fell sharply after the precious metal retreated amid profit-taking and signs of easing U.S.-China tensions.

Shares of Zijin Mining Group were down 3.65% in Hong Kong and 3.1% in Shanghai by midday Wednesday. Zijin Gold International was off by 2.2%, while Zhongjin Gold fell 4.0%.

That came as gold prices dropped in their biggest decline in more than a decade, just one day after notching new record highs. The front-month contract slid 5.7% to $4,087.70 a troy ounce on Tuesday, its largest percentage drop since June 2013, according to FactSet. The most-active gold futures contract also fell 5.7%, to $4,109.10.

Investors appear to be locking in profits after the yellow metal's historic rally in recent weeks. Spot gold, recently 0.2% lower at around $4,116.58 an ounce, has climbed more than 55% this year.

Analysts at ANZ said the absence of the weekly CFTC report--which shows futures market positions--during the U.S. government shutdown could have increased speculative positions by investors.

"Such positioning had built to substantial levels and ultimately triggered the selloff," the analysts said. However, they still see long-term drivers for the metal's prices despite the pullback.

Hopes of easing U.S.-China trade tensions have also undermined gold's safe-haven appeal. President Trump, who is scheduled to meet with Chinese leader Xi Jinping at the APEC summit in South Korea, has signaled optimism about a trade agreement with China.

"I have a great relationship with President Xi. I expect to be able to make a good deal with him," Trump said at a lunch event on Tuesday.

Write to Sherry Qin at sherry.qin@wsj.com

By Sherry Qin

Mainland Chinese gold mining stocks surged as markets reopened after the Golden Week holiday, catching up with gains in Hong Kong-listed peers after spot gold topped $4,000 a troy ounce amid global political uncertainty.

Zijin Mining Group shares jumped 8.4% by midday Thursday, Shandong Gold Mining gained 10%, the daily limit in Shanghai, and Zhongjin Gold advanced 8.9%.

The rally in gold producers lifted the Shanghai Composite Index 1.2% to 3931.07 by midday, pushing the benchmark above the 3900 level for the first time since August 2015.

China's mainland stock markets had been closed from Oct. 1 to Oct. 8 for the Golden Week holiday.

Spot gold surpassed $4,000 per troy ounce on Wednesday for the first time and last traded at $4,040.46 per troy ounce.

Investors have turned to gold as a safe haven amid an extended U.S. government shutdown that could complicate the Federal Reserve's policy decisions, as well as growing political jitters in France and Japan.

HSBC analysts said that with additional Fed rate cuts expected over the next 12 months, gold prices are likely to be supported in the near term--and Chinese gold miners stand to benefit from the sustained rally.

The recent euphoria around gold has likely also buoyed shares of other metals and mining companies, said Moningstar analyst Kai Wang. Ganfeng Lithium rose 9.1% in Shenzhen, while Jiangxi Copper was up 10% in Shanghai.

"Some investors may be indiscriminately buying hard-metal commodities because of the rise of gold," Wang added.

Write to Sherry Qin at sherry.qin@wsj.com

Revenue and net profit surged in the first half of 2025, with net profit up 54.64% and revenue up 22.90% year-over-year. Key financial ratios improved, and operating cash flow turned positive.

Original document: Zhongjin Gold Corp., Ltd. Class A [600489] Interim report — Aug. 29 2025

Chinese shares rose Thursday on growing market confidence after the country's central bank helped guide the strength of the yuan.

The Shanghai Composite Index, the main gauge of Chinese stocks, rose 0.7% to 3,605.73. The Shenzhen Component Index jumped 1.2% to 11,193.06.

Before Thursday's market open, the People's Bank of China set the midpoint rate at 7.1385 yuan per dollar, stronger than the Reuters estimate of 7.1503 yuan per dollar.

The PBOC's stronger yuan fixing aimed to balance domestic needs with global factors, Reuters cited ANZ's senior China strategist Xing Zhaopeng as saying.

Xing added that a stronger yuan could attract more investment in Chinese assets, with the wealth effect possibly boosting spending and market sentiment as well as helping counter deflation.

In company news, Zhongjin Gold said six Northeastern University students died at its Wunugetushan copper-molybdenum mine in Inner Mongolia, China. Shares of the miner fell 5% Thursday.

Zhongjin Gold said six Northeastern University students died at its Wunugetushan copper-molybdenum mine in Inner Mongolia, China.

The students drowned after falling into a flotation tank due to a collapsed grid plate, according to a Thursday filing with the Shanghai bourse.

The incident, which occurred Wednesday, also left one teacher injured.

Shares of the miner fell 5% in recent trade.

Zhongjin Gold forecasts first-half attributable net profit of between 2.61 billion yuan and 2.88 billion yuan, compared with 1.74 billion yuan the previous year.

The rise of between 50% and 65% is due to rising gold prices and improved operational efficiency, according to a filing with the Shanghai bourse.

Shares of the gold miner closed 10% higher Monday.