China Silver Group Limited Issues Positive Profit Alert for FY2025

Key Highlights for Investors

• Significant Jump in Net Profit Expected: China Silver Group Limited anticipates a dramatic increase in net profit attributable to owners for the year ended 31 December 2025 (FY2025), forecasting a profit of RMB570 million to RMB600 million. This is a substantial surge compared to approximately RMB10 million reported for FY2024.
• Excluding Share-Based Expenses: Excluding employee share option and award expenses, the expected net profit would have been even higher, ranging from RMB621 million to RMB651 million for FY2025.
• Key Drivers of Profit Growth:
  • Manufacturing Segment: Despite a decrease in sales volume and revenue, the manufacturing segment saw improved net profit margins, primarily due to a notable increase in silver prices in FY2025.
  • New Jewellery Retail Segment: The Group’s New Jewellery Retail segment, previously operated by Mount Everest Gold Group Company Limited (Everest Gold), recorded a substantial increase in revenue from gold and silver product sales. The majority of gold products sold were sourced from inventories acquired at relatively low costs, which, combined with the significant rise in gold prices during the year, resulted in a material increase in gross profit margin and overall net profit for this segment.
  • Gain from Deemed Disposal of Subsidiary: The Company completed the deemed disposal of Everest Gold on 31 December 2025, resulting in a gain of approximately RMB537 million.
  • Gain from Sale of Fresh Food Retail Segment: The Group completed the disposal of its Fresh Food Retail segment in January 2025, generating a gain of approximately RMB11 million after accounting for non-controlling interests.
• Offsetting Factors:
  • Share-Based Compensation Expenses: The Group incurred expenses of approximately RMB28 million in FY2025 due to the grant of share awards to employees.
  • Share Options Granted by Everest Gold: Additional expenses of about RMB23 million were recorded due to share options granted by Everest Gold to its employees, after accounting for non-controlling interests.
• Pending Final Results: The figures are based on unaudited consolidated management accounts and may be subject to adjustments. The final annual results for FY2025 are expected to be published by the end of March 2026.

Potential Price Sensitive Information

• The sharp increase in net profit, driven by higher commodity prices, disposal gains, and improved margins, is a highly positive signal and could significantly affect share valuation.
• The successful completion and gain from the disposal of significant assets (Everest Gold and the Fresh Food Retail segment) may indicate a strategic refocus and potential for further value-unlocking activities.
• The impact of share-based compensation expenses, while negative, is more than offset by the gains from business disposals and improved margins.
• Investors should note that the results are unaudited and subject to adjustment.

Management Commentary and Next Steps

The Board, led by Chairman Chen Wantian, advises shareholders and potential investors to exercise caution when dealing in the Company’s securities until the final audited results are released.

The anticipated annual results announcement is expected by the end of March 2026.

Conclusion

China Silver Group Limited’s expected surge in profitability for FY2025, driven by strong commodity prices, disposal gains, and improved business margins, represents a major positive development. These results are likely to be closely watched by the market and could have a significant impact on the Company’s share price in the near term.

Disclaimer: The above summary is based on the Company’s announcement and unaudited management accounts. Final audited results may differ. This article does not constitute investment advice. Investors are strongly advised to exercise caution and consult professional advisors before making investment decisions relating to China Silver Group Limited.

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