--- title: "[IPO Tracking] Despite a significant increase in performance, why did Chifeng Gold (06693.HK) plummet by over 24%?" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/39439870.md" description: "As of the time of writing on March 23, Hong Kong-listed Chifeng Gold (06693.HK) plummeted 24.19%, while its A-share counterpart (600988.SH) hit the daily limit-down of 10%, with over 700 million yuan firmly locking in the sell-off. Such extreme market movements have drawn widespread attention. Ironically, just days earlier, Chifeng Gold had released its most impressive annual report in history. However, the explosive growth in its performance failed to support the stock price. Instead, the stock faced massive capital flight upon resumption of trading. This divergence between performance and stock price is attributed to the dual pressures of uncertainty surrounding a change in controlling ownership and a sharp drop in international gold prices..." datetime: "2026-03-23T06:43:49.000Z" locales: - [en](https://longbridge.com/en/topics/39439870.md) - [zh-CN](https://longbridge.com/zh-CN/topics/39439870.md) - [zh-HK](https://longbridge.com/zh-HK/topics/39439870.md) author: "[财华社](https://longbridge.com/en/profiles/11651030.md)" --- # [IPO Tracking] Despite a significant increase in performance, why did Chifeng Gold (06693.HK) plummet by over 24%? As of March 23rd, at the time of writing, Chifeng Gold's Hong Kong stock (06693.HK) plummeted 24.19%, while its A-share counterpart (600988.SH) directly hit the 10% daily down limit, with over 700 million yuan firmly locking the limit-down board. Such an extreme market movement has drawn widespread attention. Ironically, just days before, Chifeng Gold had released its most impressive annual report in history. However, the explosive earnings growth failed to support the stock price. Instead, after resuming trading, the company faced massive capital flight. This divergence between performance and stock price hides the dual pressures of uncertainty surrounding the change in controlling stake and a sharp drop in international gold prices. **Best Annual Performance on Record: Profits in One Year Exceed Three Years' Combined** On March 20th, Chifeng Gold released its 2025 annual report. The financial data was remarkably strong, fully delivering on the company's development achievements from focusing on its core gold business and global expansion. In 2025, the company achieved total operating revenue of RMB 12.639 billion, a significant year-on-year increase of 40.03%. Net profit attributable to shareholders of the parent company reached RMB 3.082 billion, a robust 74.70% year-on-year growth. The net profit scale directly surpassed the combined total of 2022-2024, achieving "earning three years' worth of money in one year." Beyond the high growth in both revenue and profit, the company's profit quality also improved. Net cash flow from operating activities reached RMB 5.556 billion, a 69.97% year-on-year increase, providing a solid foundation for future development with ample cash flow. The gross profit margin of the core mining business rose to 53.60%, an 8.62 percentage point increase year-on-year, significantly enhancing core profitability. As the first "A+H" gold mining stock in Inner Mongolia and the third nationwide, Chifeng Gold, after listing on the Hong Kong Stock Exchange in 2025, completed its dual capital platform layout domestically and internationally. Overseas assets accounted for 68.80%, and overseas revenue also constituted a high proportion, highlighting the advantages of globalization in risk resistance. The asset-liability ratio dropped to 33.91%, with the financial structure continuously optimized. Its development prospects were originally highly regarded by the market. **Change in Controlling Stake Coupled with Low-Priced H-Share Private Placement, Strategic Uncertainty Triggers Capital Flight** The reason for the stock price crash may be related to Chifeng Gold's announcement regarding the change in controlling stake. The announcement shows that on March 22nd, the company's controlling shareholder and actual controller, Ms. Li Jinyang, and her concert parties signed a share transfer agreement with Zijin Gold, a wholly-owned subsidiary of Zijin Mining (02899.HK). They intend to transfer all of their combined 242 million A-shares (unrestricted tradable shares) for a total consideration of approximately RMB 10.006 billion, with a transfer price of RMB 41.36 per share. Simultaneously, Chifeng Gold signed a strategic investment agreement with Zijin Gold, proposing a private placement of 311 million H-share ordinary shares at HKD 30.19 per share. This price is only a fraction of the company's pre-suspension H-share price of HKD 42.08 per share, representing a significant discount that directly suppresses Hong Kong stock valuation. Upon completion of this transaction, Zijin Gold will hold a 25.85% stake in Chifeng Gold, gaining control of the company. The actual controller will change from Li Jinyang to the Shanghang County Finance Bureau. For the capital market, a sudden change of ownership at the peak of performance undoubtedly brings significant uncertainty. On one hand, with the original controller exiting, it remains unknown whether the company's original development strategy, management team, and overseas mine operation plans will be adjusted, raising concerns about a slowdown in future development pace. On the other hand, the heavily discounted H-share private placement lowers the overall valuation benchmark. Some market participants believe the equity transaction pricing is conservative, further triggering panic selling. **International Gold Price Hit Hard, Sector Headwinds Amplify Stock Price Adjustment** Beyond the company's own equity changes, the external factor of a sharp drop in international gold prices became another key factor crushing Chifeng Gold's stock price, also dragging down the entire gold sector. On March 23rd, international spot gold continued its weakness, with London spot gold breaking below the key support level of $4,400 per ounce during the session, setting the longest losing streak since October 2023. The traditional safe-haven asset has completely fallen out of favor. Meanwhile, besides Chifeng Gold (06693.HK), on March 23rd, Shandong Gold (01787.HK), Tanjinshan Mining (00621.HK), Tongguan Gold (00340.HK), Laopu Gold (06181.HK), and Lingbao Gold (03330.HK) all experienced significant declines. Regarding the reasons behind the gold price crash, industry experts provided clear interpretations. Professor Tian Lihui from Nankai University's School of Finance stated that gold prices are driven by three factors: real interest rates, US dollar credit, and risk sentiment. This crash superficially stems from delayed Federal Reserve interest rate cut expectations leading the market to reassess real rates. At a deeper level, it's a shift in pricing logic, where geopolitical safe-haven demand gives way to inflation trading. Soaring oil prices push up inflation expectations, causing capital to flow from gold to the US dollar and Treasuries, triggering a stampede of selling. Luo Zhiheng, Chief Economist at Yuekai Securities, said that the global stock market decline led to forced liquidations of high-leverage financing positions. Gold, which had previously seen substantial profits, became the preferred asset for liquidation. Passive selling further exacerbated the decline in gold prices. **Institutional Divergence Between Bulls and Bears Emerges** Despite the short-term decline in both stock and gold prices, institutions are not universally bearish on gold's future outlook, with clear divergence between bulls and bears. Several leading institutions maintain a long-term bullish view on gold. Morgan Stanley expects gold prices could reach $5,700 per ounce in the second half of the year if geopolitical tensions persist. Huachuang Securities believes gold is in a super-cycle, with central bank gold-buying demand continuously strengthening, providing long-term support from safe-haven and investment demand. A China International Capital Corporation (CICC) research report points out that current market expectations are overly pessimistic, there is still room for interest rate cuts in the second half, and gold offers attractive value for long positions. For Chifeng Gold, the short-term stock price crash is the result of a three-way contest between positive earnings, equity changes, and the gold price crash. The company plans to hold its annual results and cash dividend briefing on March 26th, where more details of the equity transfer may be disclosed. Whether it can emerge from the trough depends on, on one hand, whether international gold prices can stabilize and rebound, and on the other hand, whether Zijin Mining, after taking control, can continue the company's original high-quality strategy and stabilize overseas mine operations and internal growth momentum. How this heavyweight control transaction in the gold industry will ultimately reshape the industry landscape still requires continuous market monitoring. Author: Feiyu ### Related Stocks - [06693.HK](https://longbridge.com/en/quote/06693.HK.md) - [600988.CN](https://longbridge.com/en/quote/600988.CN.md)