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Lingbao Gold flags stable Q1 profit as convertible bond accounting masks core gains

Story Highlights
  • Lingbao Gold expects stable Q1 2026 profit of at least RMB250 million, supported by higher gold prices and cost controls but offset by sizable non-cash losses from convertible bond valuation changes.
  • For full-year 2026, the company projects additional non-cash fair value losses and finance costs from previously issued and fully converted zero-coupon convertible bonds, which it says do not affect cash flow or underlying operations.
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Lingbao Gold flags stable Q1 profit as convertible bond accounting masks core gains

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The latest update is out from Lingbao Gold Group Company Ltd. Class H ( (HK:3330) ).

Lingbao Gold Group expects to report a net profit of at least RMB250 million for the first quarter of 2026, broadly in line with the prior year, supported by steady production, ongoing cost controls and higher gold prices. However, this performance was significantly offset by a non-cash loss of about RMB260 million from fair value changes in its convertible bonds and related finance costs of roughly RMB22.1 million, which the board stresses do not reflect the group’s core operating strength.

For the full 2026 fiscal year, the company anticipates further non-cash financial gains or losses tied to those zero-coupon convertible bonds issued and fully converted into H shares earlier in the year, with the preliminary figures pointing to similar fair value losses and imputed interest expenses. Management underscores that these accounting impacts arise from share-price-driven valuation changes under Hong Kong Financial Reporting Standards, have no cash outflow effect, and are separate from the underlying operational performance that benefits from a stronger gold price environment.

More about Lingbao Gold Group Company Ltd. Class H

Lingbao Gold Group Company Ltd. is a Mainland China-based gold producer operating through a group structure, with its major product being gold. The company focuses on advancing production and operations while implementing cost reduction and efficiency measures, positioning itself as a cost-conscious player in the precious metals sector.

Average Trading Volume: 18,939,384

Technical Sentiment Signal: Buy

Current Market Cap: HK$35.95B

Find detailed analytics on 3330 stock on TipRanks’ Stock Analysis page.

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