SD Gold (Shandong Gold Mining Co., Ltd.) reported a resilient first half for 2026, with net profit attributable to shareholders rising 26.17% year-on-year to RMB3.54 billion, despite a 5.60% decline in operating income to RMB53.59 billion.

Profit before tax jumped 48.74% to RMB8.16 billion, lifted by lower operating costs and lean-management initiatives. Basic and diluted earnings per share increased 26.32% to RMB0.72.

A discrete RMB705.33 million fair-value loss on the group’s 18.71% stake in Donghai Securities weighed on headline earnings; excluding this non-cash item, underlying net profit would have grown 45.01% to RMB4.07 billion.

Operating metrics showed mixed trends: • Operating costs fell 13.57% to RMB40.49 billion, reflecting reduced volumes of third-party gold purchases and continued cost-control measures. • Selling expenses more than doubled to RMB160.72 million, attributable to higher sales commissions, while administrative and finance costs declined 9.00% and 7.41%, respectively. • Net cash from operations fell 26.01% to RMB7.77 billion, primarily on higher tax payments; investment outflows rose to RMB8.68 billion, driven by increased construction spending.

Balance-sheet indicators remained solid. Total assets grew 4.21% since end-2025 to RMB177.55 billion, while equity attributable to shareholders increased 4.98% to RMB47.14 billion. The gearing ratio stood at 162.44%, marginally lower than year-end 2025.

Production performance was mixed. Mine-produced gold dropped 22.70% to 19.10 tonnes, reflecting domestic safety-related curtailments, though overseas mines contributed 6.69 tonnes, up 18.03% year-on-year. Management cited ongoing integration and expansion projects—most notably at Jiaojia, Xincheng and Sanshandao mines—as critical to future output recovery.

The board declared an interim dividend of RMB1.00 per 10 shares (RMB0.10 per share), totalling approximately RMB461 million and equal to 34.84% of first-half profit attributable to ordinary shareholders post perpetual bond interest. A-share dividends were paid on 21 August 2026; H-share payments are scheduled for 7 September 2026.

Looking ahead, SD Gold cautioned that intensified safety inspections and project developments in key Yantai-area mines may constrain full-year production, though management expects the impact to ease as new capacity ramps up.