Investment highlights:

1. The company has two original production and operation entities. One is Xincheng Gold Mine, with the designed mining and dressing production capacity of 1250 tons/day, which actually reaches 1600 tons/day; Second, Jiaojia Gold Mine, with the designed mining and dressing capacity of 1.200 tons/day, actually reached 1.550 tons/day. The production scale, gold reserves, output and profit of the above two mines are among the best in the national gold industry.

2. Gold has the dual properties of metal and finance, and has the function of hedging. The excess liquidity of the US dollar leads to the depreciation trend, and gold will be sought after accordingly because of its hedging function. In addition, the future demand for gold reserves in countries with high foreign exchange reserves such as China is also one of the factors that cannot be ignored.

3. Xincheng Gold Mine, the main body of the company's production and operation, is a large-scale second-class mine with comprehensive production capacity of mining, dressing and smelting. The proven geological reserves are calculated according to the annual mined ore amount of 4 1.25 million tons, the service life exceeds 16 years, and the annual output value is100000 yuan, so it is known as "the first gold mine in China".

Negative factors:

1, most products are self-produced mineral gold, so the change of gold price directly affects the company's gross profit margin.

Comprehensive comments: The company is mainly engaged in mineral gold, with two production and operation entities, Xincheng Gold Mine and Jiaojia Gold Mine. Due to the dual attributes of metal and finance, gold has the function of hedging and preserving value. Under the depreciation trend caused by the excess liquidity of the US dollar, gold will be sought after for its hedging function. Pay due attention to band opportunities.