Last year, net profit increased by over 10% YoY, underperforming the increase in gold prices. China National Gold Group Corporation reduced the production of its main products for 2025.

China National Gold Group Corporation (600489.SH) reported a YoY increase of over 10% in net profit for 2024, yet still underperformed the growth in gold prices. The company has revised down its production targets for major non-ferrous metal products in 2025.

The company announced this evening that in 2024, it achieved operating revenue of RMB 65.556 billion, up 7.01% YoY; net profit attributable to shareholders of the publicly listed firm was RMB 3.386 billion, up 13.71% YoY; and net profit excluding non-recurring gains and losses was approximately RMB 3.532 billion, up 18.25% YoY.

In Q1 of this year, the company generated operating revenue of RMB 14.859 billion, up 12.88% YoY; and net profit attributable to shareholders was RMB 1.038 billion, up 32.65% YoY.

The rise in gold prices was the primary factor driving the company's performance growth in 2024. The company stated that the average international gold price in 2024 was US$2,386 per ounce, up 23% YoY.

It should be noted that, compared to major listed gold mining enterprises such as Shandong Gold Mining Co., Ltd. (600547.SH), Shandong Gold International Mining Co., Ltd. (000975.SZ), Hunan Chenzhou Mining Group Co., Ltd. (002155.SZ), and Chifeng Gold Corporation (600988.SH), which all reported YoY increases in net profit of over 50% for 2024, China National Gold Group Corporation significantly underperformed its peers in the industry.

Further analysis reveals that China National Gold Group Corporation's gold business primarily consists of two major segments: smelting and mining. Among these, the smelting business typically accounts for approximately 90% of operating revenue (before inter-segment eliminations), with a gross profit margin that has remained around 2%-4% in recent years, significantly lower than the 40%-50% gross profit margin of the mining business in recent years.

In terms of production, in 2024, the company's production of mine-produced gold, smelted gold, mine copper, and copper cathode was 18.35 mt, 37.95 mt, 82,000 mt, and 396,900 mt, respectively, with YoY changes of -2.86%, -7.14%, 2.60%, and -3.42%, respectively.

The company also disclosed its 2025 business plan this evening. In terms of production of major products, it plans to produce 18.17 mt of mine-produced gold, 35.30 mt of smelted gold, 79,400 mt of mine copper, and 396,200 mt of copper cathode, with YoY changes of approximately -0.98%, -6.98%, -3.17%, and -0.18%, respectively. In terms of resource exploration, it plans to add 33.5 mt of gold metal resources and 120,000 mt of copper metal resources.

Regarding gold prices in 2025, the company stated that, on one hand, although inflation has slowed somewhat, it remains above target levels; on the other hand, the US dollar is expected to stabilize or weaken slightly. Additionally, although global economic growth remains on an upward trajectory, it is still below trend levels, and safe-haven demand may support gold to some extent. However, the weakness in gold jewelry demand may narrow somewhat, while the growth momentum of investment demand may slow compared to 2024, and gold prices may continue to fluctuate at highs.