Friday, 7 April 2017, 17:15 HKT/SGT

Xiamen,China, Apr 7, 2017 - (ACN Newswire) - Hengxing Gold Holding Company Limited ("Hengxing Gold" or the "Company", HKEx: 2303), an emerging gold mining company in China, announced its annual results for the year ended 31 December 2016 (the "review period"), with a 41% dividend payout ratio. Highlights are as follows:

- Net profit after tax surged by 279% year on year to reach HKD227.2 million
- HK$0.1 cash dividend per share proposed, representing a dividend payout ratio of 41%
- Gold production rose by 53% year on year to 66,604 ounces
- All-in gold production cost and cash cost decreased by 28% and 12% year on year to US$609/oz and US$537 respectively

For the year ended 31 December 2016, the Company's revenue reached HKD819.5 million, representing a year-on-year increase of 158%. Net profit after tax surged by 279% year on year to reach HKD227.2 million. Earing per share amounted to HKD 0.25, which was higher than most Chinese listed gold companies. The Board of Directors proposed HK$0.1 cash dividend per share, totalling HK$9,250 million, with a dividend payout ratio of 41%, topping the list of global gold companies.

With the increased production and remarkable improvements in operating results, the Gold Mountain Mine, wholly owned by the Company, is the largest gold mine in Xinjiang region with highest ore quantity processed, the most gold produced and the lowest all-in cost by a single mine.

Increase in Annual Output
During the review period, the Gold Mountain Mine crushed and processed approximately 4.8 million tonnes of ore, representing an increase of 14% over 4.2 million tonnes in 2015. The average head grade increased to 0.95 g/t, 23% higher than 0.77 g/t year on year. The gold recovery rate was 57%, representing a year-on-year increase of 7.5%. The gold production was 66,604 ounces (equivalent to 2,072.0 kg) representing a substantial increase of approximately 53% as compared to 43,661 ounces (equivalent to 1,358.0 kg) in 2015.

Lowered Production Cost from Cost Control
During the review period, the all-in gold production cost and cash cost of Gold Mountain Mine decreased by 28% and 12% year on year to US$609/oz and US$537 respectively. Debts reduced to HKD406 million compared with HKD513 million in 2015 and debt ratio reduced by 30% year on year to 36.42%. Consequently, finance expense reduced by HKD5.6 million.

Ex-Zijing Mining president joined the Company
Mr. Luo Yingnan, the former president and vice chairman of Zijin Mining Group, joined the Company as senior advisor of the Board of directors. Mr. Luo is a professor-level senior engineer in China with more than thirty years of experience in gold mining industry. Mr. Luo provided consultation to the Company on mining operations, exploration and acquisitions. At the same time, Mr. Li Shanren, the former vice president of Zhaojin Mining, joined the Gold Mountain Mine as general manager in charge of daily mining and production. Due to the enhancement of the management team, the Gold Mountain Mine successfully met the target of both production and profit in 2016.

Technical Upgrade and Exploration Updates
After extensive tests and trials, the decision of using high-pressure grinding roller was made in 2016 as part of overall technical upgrade. The final particle size is expected to meet the designed size, and the leaching recovery rate will be enhanced by 8%-10%.

The Company has completed 12 holes totalling 3,110 meters infill drilling and supplementary drilling at the boundary of a new prospect as of 31 December 2016. The mineral resource estimate will be updated to reflect the increases in both amount of resources and average grade of the prospect.

In addition, the Company has implemented various occupational health, safety and training systems and has been committed to serving local community development, protecting local mining environment, and creating a safe and reliable working environment with the goal of building green mines.

About Hengxing Gold Holding Company Limited (HKEx: 2303)

Hengxing Gold is an emerging gold mining company in China currently operating the largest gold mine in Xinjiang region, with 3.2 million ounce of gold resources and 2.2 million ounce of gold reserves. Hengxing Gold?s growth strategy is to increase its resources by making acquisitions, operate multiple gold mines cost-efficiently, as well as seeking for diversified investments in growth sectors, so as to bring additional value to its shareholders.

Topic: Press release summary Sectors: Metals & Mining, Daily Finance, Daily News
http://www.acnnewswire.com
From the Asia Corporate News Network