China Daye Non-Ferrous Metals Mining Issues Profit Warning for 2025

Key Highlights

• Significant profit decline expected for FY2025: The Group anticipates a substantial year-on-year decrease in profit for the year ended 31 December 2025.
• Revenue increases despite profit drop: Estimated revenue for 2025 is approximately RMB 66.05 billion, up 14.17% from RMB 57.85 billion in 2024.
• Profit nearly halves: Profit for 2025 is expected to be around RMB 5.37 million, a decrease of about 44.04% compared to RMB 9.60 million in 2024.
• Industry headwinds: The expected decline in profit is mainly due to intensified competition and supply issues in the copper smelting sector, leading to sharply reduced smelting processing charges.
• Preliminary results: Figures are based on unaudited management accounts; final audited results will be disclosed in the forthcoming annual results announcement.

Details Investors Should Know

China Daye Non-Ferrous Metals Mining Limited (“the Company”) has issued a profit warning for the financial year ended 31 December 2025. The board of directors advises shareholders and potential investors that, based on preliminary unaudited consolidated management accounts, the Group is expected to record a substantial decrease in profit as compared with the previous year.

Financial Performance Overview

• Revenue: The Group’s revenue for 2025 is estimated at approximately RMB 66,050,939,000, representing a robust increase of about 14.17% year-on-year.
• Profit: Despite the revenue growth, profit for the period is projected to be about RMB 5,370,000, a sharp decline of roughly 44.04% from 2024’s profit of RMB 9,596,000.

Reasons for the Profit Decline

According to the board, the anticipated significant decrease in profit is primarily attributable to two major factors:

1. Accelerated Release of Smelting Capacity: The domestic and international smelting capacity saw concentrated and rapid expansion during the year, intensifying competition within the sector.
2. Tight Supply of Copper Concentrate: The supply of copper concentrate remained tight, resulting in a sharp drop in smelting processing charges. This directly impacted the profit margins of smelting enterprises, including China Daye.

The combined effect of these industry headwinds significantly narrowed the profit space for smelting processing businesses.

Implications for Shareholders and Potential Investors

• Price-sensitive information: The expected substantial drop in profit, despite a notable increase in revenue, is considered price-sensitive and may impact the Company’s share price.
• Ongoing finalization: Shareholders should note that the information provided is based on the Board’s preliminary assessment. The annual results have not yet been audited or reviewed by the Company’s auditor.
• Caution advised: The Company specifically advises shareholders and potential investors to exercise caution when dealing in the shares, given the profit warning and pending release of audited annual results.

Corporate Governance

As of the announcement date, the Board comprises three executive directors—Mr. Xiao Shuxin (Chairman), Mr. Zhang Jinzhong, and Ms. Zhang Aijun—and three independent non-executive directors: Ms. Liu Fang, Mr. Wang Qihong, and Mr. Kong Hua.

Conclusion

This profit warning is a significant development for China Daye Non-Ferrous Metals Mining Limited. The combination of increased revenue and sharply reduced profit, driven by sector-wide pressures, is expected to be closely watched by the market. Investors should remain vigilant for further updates when the audited annual results are released.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions. The information presented is based on unaudited management accounts and subject to change upon final audit.

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