Shanghai Construction Group shares fluctuate on gold mine reports

Shanghai Construction Group (SSE:600170) shares experienced an abnormal fluctuation, with cumulative deviation reaching 20% over three consecutive trading days (September 11, 12, and 15, 2025). The company clarified that its operations remain normal, and there are no undisclosed major events. Recent media excitement stemmed from re-reported 2020 information regarding increased gold reserves at Zala Mining Co., Ltd.'s Koka gold mine, a 60%-owned subsidiary.

The company emphasized that its gold business revenue is consistently low, typically less than 0.5% of total revenue, indicating minimal impact on overall operations. Gold mining projects inherently involve long extraction periods, varying ore grades, and production uncertainties, compounded by potential instabilities in overseas environments and policies.

For the first half of 2025, Shanghai Construction Group reported a 28.04% decrease in operating revenue to 1.050.42 bn yuan. Net profit attributable to shareholders fell by 14.07% to 710m yuan, while non-recurring net profit decreased by 69.13% to 217m yuan. The company cautioned investors about its fluctuating performance and noted that its current rolling price-to-earnings ratio is higher than the industry average, suggesting potential irrational speculation.