Zhongjin Gold Corp Ltd

The Shanghai Composite Index closed higher today at 3,900.35 points, up 21.92 points or 0.57 percent, supported by a surge in gold mining stocks which rallied in line with spot gold prices amid a weaker US dollar and lower bond yields. Shandong Gold Mining jumped 3.49 percent, Zhongjin Gold surged 3.55 percent, and Zijin Mining Group rose 1.17 percent. Meanwhile, artificial intelligence and semiconductor stocks were sold for profit, with SMIC falling 1.04 percent. Investors are watching key Chinese economic data this week, including July trade figures due tomorrow and July consumer and producer price indexes on Sunday.

CICC Gold announced that it plans to inject capital into CICC Hotan together with related parties CICC Geology and Jinzhou Zhiyuan in proportion to their respective equity stakes. The company will inject 752 million yuan, and its shareholding ratio will remain at 30 percent after the capital increase. This capital injection will be used to pay the exploration rights transfer fee for the Tuganmansu gold-copper mine project in Akto County, Xinjiang, which CICC Hotan won at auction.

Zhongjin Gold plans to inject 752 million yuan into its 30 percent-owned associate, Zhongjin Hetian Mining Development Company Limited. Zhongjin Hetian Mining recently won the Tugeman Su gold-copper project in Akto County, Xinjiang, with exploration rights transfer proceeds of 2.507 billion yuan. Due to a shortfall in the existing registered capital, Zhongjin Gold and related parties China National Gold Group Geological Company Limited and Beijing Jinzhou Zhiyuan Mining Technology Development Center Limited Partnership will carry out a pro-rata capital increase according to their shareholding ratios. Among them, the related party Zhongjin Geological will inject 1.504 billion yuan, and Jinzhou Zhiyuan will inject 251 million yuan. After the capital increase, the shareholding ratios of all shareholders will remain unchanged. This transaction constitutes a related-party transaction and has been approved by the board of directors of Zhongjin Gold, without the need for submission to the shareholders' meeting for review.

On July 22, the precious metals sector rose 3.34% intraday, with constituents such as Shanjin International, Chifeng Gold, and Zijin Mining all gaining over 5%. A research note from Changjiang Securities pointed out that as geopolitical influences ease and oil prices and inflation retreat, liquidity constraints will diminish, allowing the sector to shift from valuation contraction to a fundamentally driven upward channel, maintaining a medium-term bullish view. A Shanghai Securities research note stated that from 2020 to 2024, global gold mine production grew at a compound annual growth rate of 1.0%, while gold demand rose rapidly at a compound annual growth rate of 5.8%, reaching 148.1 million ounces in 2024, mainly driven by central bank reserve accumulation and investment demand. Against the backdrop of de-dollarization, emerging market central banks are expected to further increase gold reserves, and the precious metals industry cycle continues amid monetary policy fluctuations.

CICC Gold has released its earnings forecast, estimating that net profit attributable to owners of the parent company for the first half of 2026 will be between 4.1 billion and 4.6 billion yuan, representing a year-on-year increase of 52.15% to 70.7%. During the reporting period, prices of major metals such as gold and copper rose significantly year-on-year, providing solid support for revenue. Meanwhile, by-products like sulfuric acid also achieved considerable revenue growth, further expanding profit margins.