Shandong Gold subsidiary faces substantial tax bill, late fees hit 2025 profit

Shandong Gold Mining Co., Ltd. announced that its wholly-owned subsidiary, Shandong Gold Mining (Laizhou) Co., Ltd. (Laizhou Company), will pay 508.4m yuan in supplementary corporate income tax and 229.9m yuan in late payment fees, totaling 738.3m yuan. This follows a self-inspection revealing that free transfers of exploration rights from former subsidiaries, Zhangjian Company and Ludi Company, in 2021 and 2022 did not meet special tax treatment requirements.

While the supplementary corporate income tax will be recorded as a deferred income tax asset and not impact current period net profit, the late payment fees are expected to affect the company's 2025 net profit by 229.9m yuan. The company stated this matter will not materially impact its normal operations, with accounting treatment specifics subject to annual audit.

Separately, Shandong Gold also announced a further implementation of undertakings by its controlling shareholder, Shandong Gold Group Co., Ltd., and Shandong Gold Non-ferrous Metal Mine Group Co., Ltd., to avoid horizontal competition. These undertakings, which expired on November 10, 2025, involve the injection of gold business assets into Shandong Gold or their sale to third parties. The resolution for this extension was approved by the board and is subject to general meeting consideration.