Southern Manganese (01091) is expected to obtain a loss attributable to shareholders of not less than HK$700 million in the year and a year-on-year profit to loss

According to the Zhitong Finance App, Southern Manganese (01091) issued an announcement. Compared with the profit attributable to the company owner of about HK$64 million for the year ended December 31, 2023 (fiscal year 2023), the Group is expected to earn no less than HK$700 million in losses attributable to the company's owners for the year ended December 31, 2024.

According to the announcement, the main reasons for the loss were as follows: mainly due to the settlement of the guarantee liability related to the corporate guarantee granted by the Group in 2015 for bank financing of the joint venture Dushan Jinmeng Manganese Industry Co., Ltd.; and in 2024, mainly due to falling prices of manganese ore and chemical products, the company did not adjust its sales strategy in a timely manner and caused excessive sales expenses, which ultimately led to losses in the trading business.