ZHONGJIN GOLD(SH:600489) Nan Fang Du Shi Bao·2025-07-29 13:56Core Viewpoint - A tragic accident occurred at the China Gold Group Inner Mongolia Mining Co., resulting in the death of six students during a field trip, leading to significant financial repercussions for Zhongjin Gold Corporation, which saw its stock drop over 5% and a market value loss exceeding 5 billion yuan [2][3]. Group 1: Incident Details - Six students fell into a flotation tank due to a grid plate falling off during a visit to the Inner Mongolia Mining Co. [2] - Zhongjin Gold confirmed the incident and expressed apologies, with its stock price declining significantly in the following days [2][3]. - The Inner Mongolia Mining Co. contributes approximately 60% of Zhongjin Gold's profits and has been a critical part of its mining operations [2][10]. Group 2: Company Structure and Financials - Zhongjin Gold, established in 2000, is a major player in the gold industry and is 45.84% owned by the China Gold Group [3][4]. - The company reported a revenue of 65.56 billion yuan and a net profit of 3.386 billion yuan for 2024, with significant contributions from mining and smelting operations [4][10]. - The Inner Mongolia Mining Co. generated 5.915 billion yuan in revenue and 2.28 billion yuan in net profit in 2024, highlighting its importance to Zhongjin Gold's overall financial health [10]. Group 3: Related Transactions and Governance Issues - Zhongjin Gold's sales to related parties accounted for 68.11% of its total sales, raising concerns about dependency on related transactions [5][7]. - Several high-ranking officials from the China Gold Group have faced disciplinary actions, indicating potential governance issues within the organization [6][7]. - The company has previously stated intentions to reduce competition and related transactions among its subsidiaries [7].