Shandong Gold Group Co., Ltd. yesterday released its annual reports for 2017, indicating a 12.02 percent drop in net profits when compared with 1.292 billion yuan in 2016.
The total operating revenue, however, nudged upwards by 1.68 percent in 2017, to 51.041 billion yuan.
The decrease in profitability, the company said, was due to the drop in its output, which was held up by its efforts in the optimization of its safe mining systems, as well as an improvement in its management capabilities.
Besides, the sales volume of gold declined in 2017, and the company took a 50 percent stake in Argentina Veladero Gold Ores, which contributed to its lower profitability on a year-on-year basis. Its total assets growth, up by 48.52 percent to end at 42.116 billion yuan in 2017.
The domestic gold output decreased by 6.03 percent to 426.14 metric tons in 2017, with the gold output from the mining of 369.17 metric tons, a drop of 18.59 percent.
China has come first in the consumption of gold for the past five successive years; it has benefited from the increasing gold accessories market demand combined with the robust economic growth.
The slowdown of the output in gold mining recently in China was the result of a weakening in the gold price since 2013 as well as the influence of the government's tightening environmental and related policies.
The total operating revenue, however, nudged upwards by 1.68 percent in 2017, to 51.041 billion yuan.
The decrease in profitability, the company said, was due to the drop in its output, which was held up by its efforts in the optimization of its safe mining systems, as well as an improvement in its management capabilities.
Besides, the sales volume of gold declined in 2017, and the company took a 50 percent stake in Argentina Veladero Gold Ores, which contributed to its lower profitability on a year-on-year basis. Its total assets growth, up by 48.52 percent to end at 42.116 billion yuan in 2017.
The domestic gold output decreased by 6.03 percent to 426.14 metric tons in 2017, with the gold output from the mining of 369.17 metric tons, a drop of 18.59 percent.
China has come first in the consumption of gold for the past five successive years; it has benefited from the increasing gold accessories market demand combined with the robust economic growth.
The slowdown of the output in gold mining recently in China was the result of a weakening in the gold price since 2013 as well as the influence of the government's tightening environmental and related policies.
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