Shanghai Construction Group warns investors after stock surge

Shanghai Construction Group has issued a risk warning regarding its stock, citing significant short-term price increases substantially higher than peer companies. The company states its fundamental business operations have not changed and there is a risk of market overexcitement or irrational speculation, potentially leading to a sharp short-term decline. Investors are urged to exercise caution and make rational investment decisions.

The company clarified that recent media reports about its 60%-owned subsidiary, Zala Mining Co., Ltd., and its Koka gold mine increasing gold reserve estimates by 338,900 ounces are based on previously disclosed information from August 27, 2020, and are not new. Shanghai Construction Group's gold business contributes less than 0.5% to its total revenue annually and has minimal impact on its operations. The gold mine project has a long extraction period, and mineral grades, annual extraction volumes, and international environmental and policy factors carry uncertainties.

For the first half of 2025, Shanghai Construction Group reported operating revenue of 105.042 bn yuan, a 28.04% year-on-year decrease. Net profit attributable to shareholders was 710m yuan, down 14.07%, while net profit attributable to shareholders after deducting non-recurring gains and losses was 217m yuan, a decrease of 69.13%. The company advises investors to be aware of its fluctuating performance.