SD GOLD (01787) staged a sharp reversal in afternoon trading, climbing nearly 4% after sliding more than 8% during the morning session. The stock was trading up 3.97% at HK$26.74 at the time of writing, with turnover reaching HK$1.294 billion.

According to the company's interim results, second-quarter revenue came in at RMB 21.072 billion, down 31.65% year-on-year and 35.20% quarter-on-quarter. Net profit attributable to shareholders reached RMB 2.097 billion, up 17.71% year-on-year and 45.09% quarter-on-quarter. Excluding the impact from the disposal of its stake in Donghai Securities, the estimated attributable net profit for the second quarter was approximately RMB 2.626 billion, marking a 47.39% year-on-year increase and an 81.68% quarter-on-quarter jump.

Analysts at Dongbu Securities noted that the company's overseas mines produced 6.69 tonnes of gold in the first half, up 18.03% year-on-year. The Namdini gold mine's process optimization drove output growth of more than 50%, effectively offsetting domestic production reductions from safety inspections.

Despite international gold prices spiking at the start of the year before retreating, with the second-quarter average price below the first-quarter average, the company's second-quarter profit rose significantly from the first quarter's RMB 1.446 billion. This performance underscores the company's resilient earnings capability amid a challenging pricing environment.