South Manganese swings to profit in first half 2025

South Manganese Investment Limited reported a profit attributable to owners of the company of HK$172.7 million for the first half of 2025, a significant turnaround from a loss of HK$162.8 million in the same period of 2024. Revenue for 1H 2025 decreased by 49.2% to HK$2,912.4 million from HK$5,733.3 million in 1H 2024, primarily due to a decrease in sales revenue from trading business. Despite this, gross profit increased by 96.1% to HK$553.1 million, with the gross profit margin expanding to 19.0% from 4.9%.

The company's operating profit reached HK$207.0 million for 1H 2025, compared to an operating loss of HK$10.4 million in 1H 2024. This improvement was largely driven by a turnaround in the trading business, which shifted from a gross loss to a gross profit of HK$68.3 million. Earnings per share attributable to owners of the company were HK$0.0473 for 1H 2025, up from HK$(0.0475) in 1H 2024. The board does not recommend an interim dividend for the period.

The Group's net current liabilities decreased to HK$1,389.2 million as at 30 June 2025, and total borrowings decreased to HK$3,594.2 million. Subsequent to the reporting period, the company successfully renewed or obtained new bank loans of HK$131.6 million and completed a placing of new shares, raising net proceeds of approximately HK$180.44 million to be used for outstanding bank borrowings.