TONGGUAN GOLD (00340) issued a positive profit alert, expecting a mid-term net profit attributable to shareholders of approximately HKD 510 million to HKD 530 million, an increase of approximately 49% to 55% year-on-year.

TONGGUAN GOLD (00340) announced that it expects to achieve a profit attributable to the company's owners of approximately HKD 510 million to HKD 530 million for the six months ending June 30, 2026, representing an increase of approximately 49% to 55% compared to the profit attributable to the company's owners of approximately HKD 343 million for the same period in 2025. The aforementioned profits for the interim period of 2026 include a one-time income tax expense of approximately HKD 95 million for the 2025 fiscal year. This one-time expense arose due to a notification issued on August 7, 2026, following tax guidance from the tax authorities, which required a subsidiary of the company (originally benefiting from the high-tech enterprise preferential tax policy) to pay back taxes. Excluding the impact of the one-time tax expense mentioned above, the adjusted profit attributable to the company's owners for the interim period of 2026 is expected to be approximately HKD 605 million to HKD 625 million, representing an increase of approximately 76% to 82% compared to around HKD 343 million for the same period in 2025. The increase in profit attributable to the company's owners is mainly due to an increase in the group's average selling prices compared to the same period in 2025.