(Incorporated in Bermuda with limited liability) （於百慕達註冊成立之有限公司） Dear Non-registered Shareholder (Note 1) , 15 September 2025 The following document(s) of Tongguan Gold Group Limited (the "Company") has/have been prepared in English and Chinese and is/are available on the websites of the Company at https://www.tongguangold.com and The Stock Exchange of Hong Kong Limited at https://www.hkexnews.hk (collectively the "Websites"):- • 2025 Interim Report Please provide your email address to the Company via Hong ...

(Incorporated in Bermuda with limited liability) （於百慕達註冊成立之有限公司） (Stock Code 股份代號：340) NOTIFICATION LETTER 通知信函 Dear Shareholder(s), 15 September 2025 Should you have any queries in relation to this letter, please call the Hong Kong Share Registrar at (852) 2849 3399 during business hours from 9:00 a.m. to 5:00 p.m., Monday to Friday, excluding Hong Kong public holidays. By Order of the Board Tongguan Gold Group Limited Jiang Zhiyong Chairman and Executive Director Note: Corporate Communications refer to an ...

Financial Performance - The company recorded a revenue of approximately HKD 1,028,737,000 for the six months ended June 30, 2025, representing a 21% increase compared to HKD 849,951,000 for the same period in 2024[6]. - The company reported a profit attributable to owners of approximately HKD 342,643,000, a significant increase of 273% from HKD 91,956,000 in the previous year[7]. - Gross profit for the gold mining business was approximately HKD 530,135,000, with a gross margin of 51.5%, compared to a gross profit of HKD 218,605,000 and a margin of 33.9% in 2024, marking a 143% increase in gross profit[9]. - The net profit for the period was HKD 350,484,000, compared to HKD 90,700,000 in the same period last year, marking a 286% increase[51]. - Basic earnings per share rose to HKD 8.17, up from HKD 2.26, reflecting a 262% increase[51]. - Profit before tax reached HKD 431,381,000, a significant rise of 225% compared to HKD 132,811,000 in the previous year[50]. - The company reported a total comprehensive income of HKD 403,008,000 for the period, compared to HKD 79,133,000 in the previous year, reflecting a 409% increase[54]. Production and Sales - Gold production and sales volume increased, with the average selling price of gold rising from approximately RMB 499 per gram in 2024 to RMB 666 per gram in the current period[9]. - The total ore production for the six months ended June 30, 2025, was 253.73 thousand tons, with an average gold grade of 5.45 grams per ton[16]. - The company processed approximately 279.84 thousand tons of ore, resulting in a gold production of 1,325.20 kilograms[17]. - For the six months ended June 30, 2025, the gold mining business generated revenue of HKD 1,028,737,000, with a gross profit of HKD 530,135,000[76]. Expenses and Costs - Administrative and other expenses were approximately HKD 81,298,000, a 12% increase from HKD 72,610,000 in 2024, primarily due to the acquisition of Huasheng Construction Investment Co., Ltd. and increased employee costs[6]. - Financial costs increased by approximately 28% to HKD 19,844,000, mainly due to interest expenses related to the precious metals purchase agreement with Zijin Mining Group[6]. - Employee costs for the interim period amounted to approximately HKD 34,895,000, with stock-based payments of about HKD 2,344,000 due to stock options granted[36]. - The cost of inventory recognized as an expense was HKD 417,563,000, a decrease of 27% compared to HKD 573,294,000 for the same period in 2024[86]. Assets and Liabilities - As of June 30, 2025, the total assets and net assets of the group were approximately HKD 5,574,793,000 and HKD 3,210,874,000, respectively, compared to HKD 4,593,704,000 and HKD 2,618,967,000 as of December 31, 2024[21]. - The total bank borrowings amounted to approximately HKD 567,719,000 as of June 30, 2025, slightly increasing from HKD 530,596,000 as of December 31, 2024[22]. - The debt-to-equity ratio was approximately 18.6% as of June 30, 2025, compared to 21.4% as of December 31, 2024[22]. - The company has a net current liability of approximately HKD 288,083,000, but it continues to prepare financial statements on a going concern basis, indicating confidence in future cash flows and financing options[61]. Acquisitions and Investments - The company completed a vertical integration acquisition of Huasheng Construction Investment Co., Ltd. in January 2025, enhancing cost efficiency and safety management[42]. - The company acquired 100% equity of Huasheng Construction Investment Co., Ltd. for RMB 30,000,000 through the issuance of convertible bonds[35]. - A horizontal acquisition of Rongchang Investment Co., Ltd. was announced on March 7, 2025, expected to expand mineral reserves in Subi County[42]. - The acquisition of Huasheng Group was completed for a total consideration of RMB 30,000,000 (approximately HKD 33,000,000), with adjustments based on the future financial performance of Xi'an Hongshang over a five-year guarantee period[128]. Corporate Governance - The company emphasizes adherence to corporate governance best practices to enhance performance and protect shareholder interests[141]. - The company has complied with the corporate governance code as per the listing rules for the six months ending June 30, 2025, with specific deviations explained[142]. - The board of directors is responsible for setting business strategies and management objectives, while daily operations are delegated to management[145]. - The audit committee consists of three independent non-executive directors, ensuring the quality and integrity of internal controls and reviewing accounting principles[146]. Cash Flow and Financing - The net cash generated from operating activities for the six months ended June 30, 2025, was HKD 535,551,000, a significant increase from HKD 238,703,000 in the same period of 2024, representing a growth of approximately 124.5%[57]. - The net cash used in investing activities amounted to HKD 139,243,000, compared to HKD 21,788,000 in the previous year, indicating a substantial increase in investment expenditures[57]. - The net cash generated from financing activities was HKD 199,492,000, a turnaround from a cash outflow of HKD 179,657,000 in the prior year, reflecting improved financing conditions[57]. - The company plans to actively negotiate with financial institutions for refinancing to ensure sufficient working capital and financial requirements in the foreseeable future[61]. Shareholder Information - Major shareholders include Jiang Wei with 1,186,334,000 shares (26.98%), Lin Changdong with 600,000,000 shares (13.64%), and Lin Yuying with 330,000,000 shares (7.50%)[154]. - The company issued 327,420,000 new ordinary shares at a subscription price of HKD 0.69 per share, raising a net amount of HKD 225.5 million[29]. - The company did not declare any dividends for the six months ended June 30, 2025, consistent with the previous year[90]. - The weighted average number of shares issued during the six months ended June 30, 2025, was used to calculate the potential shares from all stock option plans, resulting in a dilution of 1.9%[161].

Group 1 - Hong Kong gold stocks continue to rise, with Lingbao Gold (03330.HK) increasing by 8.19% to HKD 18.37 [1] - Tongguan Gold (00340.HK) rises by 4.98% to HKD 2.32 [1] - China Gold International (02099.HK) sees a 3.6% increase, reaching HKD 138.1 [1] - Zhaojin Mining (01818.HK) grows by 3.27% to HKD 29.7 [1]

Group 1 - Gold stocks are collectively active, with notable increases in share prices: Chifeng Jilong Gold Mining (06693) up 3.75% to HKD 29.34, Tongguan Gold (00340) up 2.7% to HKD 2.24, Lingbao Gold (03330) up 3.51% to HKD 16.52, and Shandong Gold (01787) up 2.25% to HKD 33.56 [1][1][1] - Spot gold has strongly broken through the USD 3600 per ounce mark, setting a historical record and recording the largest weekly increase since mid-June [1][1][1] - The U.S. non-farm payroll data for August showed only 22,000 new jobs, significantly below the market expectation of 75,000, with the unemployment rate rising to 4.3%, the highest level since 2021, reinforcing expectations for a Federal Reserve rate cut [1][1][1] Group 2 - The probability of a 25 basis point rate cut by the Federal Reserve in the September meeting is at 96%, according to interest rate swaps [1][1][1] - The People's Bank of China reported that as of the end of August, China's gold reserves increased to 74.02 million ounces, up by 60,000 ounces from the end of July, marking the 10th consecutive month of gold accumulation [1][1][1]

Market Overview - The Hong Kong stock market indices collectively rose, with the Hang Seng Index increasing by 1.43% to 25,417.98 points, the Hang Seng China Enterprises Index up by 1.34%, and the Hang Seng Tech Index rising by 1.95% [1][2]. Technology Sector - Major technology stocks saw significant gains, with Kuaishou rising over 4%, Tencent Holdings up more than 2%, and JD Group, Meituan, Alibaba, NetEase, and Baidu all increasing by over 1% [2][3]. Wind Power Sector - Wind power stocks led the market with Goldwind Technology surging over 18%, followed by other companies like Longyuan Power and Datang Renewable Energy also showing gains [5][6]. Semiconductor Sector - Semiconductor and chip stocks strengthened, with Horizon Robotics increasing over 9%, and other companies like Globalfoundries and SMIC also experiencing gains [6][7]. Gold Sector - Gold stocks rose, with Tongguan Gold increasing nearly 6%, and other companies such as Shandong Gold and Zijin Mining also showing positive performance [8][9]. Lithium Battery Sector - The lithium battery sector was active, with Zhongchuang Innovation rising over 18%, and companies like Tianqi Lithium and Ningde Times also seeing significant increases [10][11]. Pharmaceutical Outsourcing Sector - The pharmaceutical outsourcing sector rebounded, with Zhaoyan New Drug rising nearly 9%, and other firms like Kanglong Chemical and Tigermed also reporting gains [12][13]. Solar Energy Sector - Solar energy stocks surged, with GCL-Poly Energy increasing over 26%, and other companies like Sunshine Energy and New Special Energy also performing well [14][15]. Agricultural Products Sector - The agricultural products sector declined, with Hualian International dropping nearly 30%, and other related stocks also experiencing losses [16][17]. Company Performance - Ark Health recently reported a revenue of 1.494 billion, a year-on-year increase of 12.9%, and a net profit turnaround to 12.5 million, reflecting significant progress in its main business [21].

Group 1 - The core viewpoint of the article indicates a significant decline in gold stocks, with major companies experiencing substantial drops in their share prices [1] - China Gold International (02099) fell by 8.15% to HKD 115, Tongguan Gold (00340) decreased by 8.04% to HKD 2.06, Lingbao Gold (03330) dropped by 6.95% to HKD 15.4, and Chifeng Jilong Gold Mining (06693) declined by 6.11% to HKD 26.76 [1] - The spot gold price experienced a sharp decline, falling below USD 3520, and is currently reported at USD 3531.89 per ounce, down 0.77% for the day [1] Group 2 - COMEX gold futures are reported at USD 3588.3 per ounce, reflecting a decline of over 1% for the day [1] - Baocun Futures noted an accelerated upward trend in precious metals since last Friday, driven by weakening performance in both domestic and international equity markets, which has increased market demand for safe-haven assets [1] - The current market focus is on the U.S. non-farm payroll data for August, which is expected to have a critical impact on the Federal Reserve's interest rate decisions in September [1]

Core Viewpoint - Gold stocks experienced a significant decline today, with major companies reporting substantial drops in their share prices due to a sharp decrease in spot gold prices [1] Group 1: Company Performance - China Gold International (02099) fell by 8.15%, closing at 115 HKD [1] - Tongguan Gold (00340) decreased by 8.04%, ending at 2.06 HKD [1] - Lingbao Gold (03330) dropped by 6.95%, with a closing price of 15.4 HKD [1] - Chifeng Jilong Gold Mining (600988) (06693) saw a decline of 6.11%, closing at 26.76 HKD [1] Group 2: Market Trends - On September 4, spot gold prices plummeted, briefly falling below the 3520 USD mark, with the latest price reported at 3531.89 USD/ounce, reflecting a daily drop of 0.77% [1] - COMEX gold futures were reported at 3588.3 USD/ounce, showing a decline of over 1% for the day [1] - Baocheng Futures noted an accelerated upward trend in precious metals since last Friday, driven by weakening performance in both domestic and international equity markets, which has increased market demand for safe-haven assets [1] Group 3: Economic Indicators - Current market focus is on the U.S. non-farm payroll data for August, which is expected to have a significant impact on the Federal Reserve's interest rate decisions in September [1]

Group 1 - The Hong Kong gold stocks experienced a high opening but subsequently declined, with notable drops including Tongguan Gold down 8%, China Gold International down over 5%, and Lingbao Gold down 4.4% [1][2] - Recent spot gold prices reached new highs, but there was a slight decline of 0.27% in early Asian trading, falling below $3,550 per ounce [2] - Analysts indicate that after reaching new highs, the risk of a short-term technical correction in gold stocks has significantly increased, urging investors to remain vigilant [2][3] Group 2 - Many gold companies' stock prices have risen far beyond their net profit growth rates, leading to historically high valuation metrics such as P/E ratios, suggesting signs of a bubble [3] - High valuations necessitate either a stock price correction or earnings growth to be absorbed, increasing short-term risks [3] - The long-term drivers for gold prices, including central bank purchases, de-dollarization, and geopolitical risks, remain strong, indicating a future dynamic between short-term volatility and long-term trends [3]

Core Viewpoint - The Hong Kong gold stocks have shown a trend of high opening and low closing, with significant declines in various companies' stock prices, indicating a potential short-term technical correction after recent highs in the gold market [1] Group 1: Market Performance - Recent performance of gold stocks includes notable declines: Tongguan Gold down 8%, China Gold International down over 5%, Lingbao Gold down 4.4%, and others experiencing declines of over 3% [1] - The latest prices for key gold stocks are as follows: Tongguan Gold at 2.060, China Gold International at 118.800, and Lingbao Gold at 15.820 [1] Group 2: Market Analysis - The spot gold market has recently reached new highs, but there was a drop of 0.27% today, falling below 3550 USD/ounce [1] - Analysts suggest that the rapid increase in gold stock prices has outpaced the growth in net profits, leading to historically high valuation metrics such as P/E ratios, indicating potential bubble-like conditions [1] - The long-term drivers for gold prices, including central bank purchases, de-dollarization, and geopolitical risks, remain strong, suggesting a battle between short-term volatility and long-term trends [1]