Gold Prices Surge and Sales Increase, WESTERN REGION GOLD's Q1 Net Profit Expected to Grow by Approximately 1300% | Earnings Insight

The sustained high level of gold prices is rapidly translating into performance dividends for listed gold companies. WESTERN REGION GOLD released its first-quarter earnings forecast for 2026 on Tuesday, expecting net profit attributable to shareholders to be between RMB 450 million and RMB 560 million. This represents a year-on-year increase of 1161% to 1470% compared to the legally disclosed data from the same period last year. This better-than-expected growth is a direct result of the simultaneous increase in sales volume and selling prices of gold products, as well as the recovery in electrolytic manganese prices. The company also disclosed that Net Profit After Deducting Non-Recurring Gains and Losses is expected to be between RMB 440 million and RMB 570 million, a year-on-year increase of 950% to 1261%, indicating that the performance growth mainly stems from substantial improvements in the core business rather than being driven by one-off factors. Dual Drivers: Production/Sales Volume and Price WESTERN REGION GOLD explicitly stated in the announcement that the core driver for the significant net profit increase this quarter comes from the core business level: the sales volume of gold products increased compared to the same period last year, and selling prices rose year-on-year, while the selling price of electrolytic manganese also increased compared to the same period last year. Comparing base period data, the company's net profit attributable to shareholders (legally disclosed data) for the first quarter of 2025 was only RMB 35.6753 million, and Net Profit Deducted For Non-Recurring Gains And Losses was RMB 41.8959 million. Based on the midpoint of the current forecast, this quarter's net profit is approximately 14 times that of the same period last year. M&A Expands Consolidated Statement Scope The background of the substantial leap in performance also involves the accounting treatment impact of an M&A transaction. In August 2025, the company completed the process of purchasing 100% equity of Xinjiang Meisheng Mining Co., Ltd. from its controlling shareholder and included the target entity in its consolidated statements. According to the "Accounting Standards for Business Enterprises" regarding business combinations under common control, the company performed a retrospective adjustment to the data from the same period last year. After the retrospective adjustment, the net profit for the same period last year was adjusted downward from RMB 35.6753 million to RMB 23.7197 million, further widening the growth margin between the current period and the same period last year. Based on the retrospectively adjusted data, the net profit for this quarter increased by 1797% to 2261% year-on-year. Risk Warning and Disclaimer Markets carry risks, and investment requires caution. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are appropriate for their specific circumstances. Investing based on this is at your own risk.