South Manganese Investment Limited Issues Significant Positive Profit Alert for FY2025

Hong Kong, 9 March 2026 — South Manganese Investment Limited (Stock Code: 1091), a leading player in the manganese industry, has announced a significant turnaround in its financial performance for the year ended 31 December 2025. This positive profit alert is likely to attract strong attention from investors and could have a material impact on the company’s share price.

Key Highlights of the Announcement

• Expected Profit for FY2025: The company projects a profit attributable to shareholders of not less than HK\$140 million for the year ended 31 December 2025. This marks a dramatic reversal from a loss of approximately HK\$725 million in the previous financial year (FY2024).
• Turnaround Drivers:
  • Optimized Trade Product Mix: Management has actively restructured the company’s product portfolio, turning the trading business from a gross loss in 2024 to a gross profit in 2025.
  • Comprehensive Cost Control: Notable cost reductions were achieved across production, procurement, material management, tendering, and operations, improving the overall profitability.
  • Reduced Impairment Losses: The company faced significant impairment losses in 2024 due to obligations relating to an associate (Dushan Jinmeng Manganese Industry Co., Ltd.). This issue did not recur in 2025, contributing to the improved bottom line.

Important Information for Shareholders and Investors

• Price-Sensitive Information: The shift from a substantial loss to a profit of at least HK\$140 million is a material event. Investors should expect potential volatility in the share price as the market reacts to this turnaround.
• Preliminary Nature of Results: The profit alert is based on unaudited management accounts and information currently available to the board. The final audited results may differ.
• Impairment Reversal: The reduction in impairment losses, particularly related to corporate guarantees for associates, is a noteworthy factor for the improved results.
• Upcoming Results Announcement: The detailed audited annual results for 2025 are expected to be published on 13 March 2026. Investors are advised to review the forthcoming results for further confirmation and details.
• Management Team: The announcement lists the current executive, non-executive, and independent non-executive directors, highlighting the company’s leadership stability.

Cautionary Statement

Shareholders and potential investors are urged to exercise caution when dealing in the company’s shares, as the financial information disclosed is preliminary and unaudited. The actual results may differ after review by the company’s independent auditor and audit committee.

Conclusion

The anticipated swing from a significant loss in 2024 to a profit in 2025 represents a major development for South Manganese Investment Limited. The improvement is attributed to strategic management actions and better cost control, as well as the absence of extraordinary impairment losses seen in the prior year. This positive profit alert is clearly price-sensitive and likely to impact the company’s share value upon market reaction.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should exercise caution, review the company’s official filings, and consult with professional advisors before making any investment decision. The financial results discussed are based on preliminary, unaudited figures and may be subject to change upon completion of the audit process.

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