Henan Dayou Energy warns of significant trading risks after stock surge

Henan Dayou Energy Co., Ltd. has issued a risk warning after its stock price rose 146.68% between October 10 and October 23, 2025, significantly outperforming the Shanghai Composite Index, which fell 0.29%, and the coal mining and processing industry index, which rose 14.98%. The company cautions investors about the risk of irrational speculation due to this excessive short-term increase.

The company's latest price-to-book ratio stands at 4.77, considerably higher than the coal mining and processing industry average of 1.74, indicating a potentially overvalued stock. Financially, Henan Dayou Energy reported a significant downturn in the first half of 2025, with revenue decreasing by 680 million yuan to 1.92 billion yuan compared to the previous year. Net profit attributable to shareholders was a loss of 851 million yuan, a decrease of 362 million yuan year-on-year.

Despite a strategic reorganization involving its indirect controlling shareholder, Henan Energy Group Co., Ltd., which will merge with China Pingmei Shenma Holding Group Co., Ltd., the company confirmed that this will not affect its production and operations. Its actual controller, the Henan Provincial State-owned Assets Supervision and Administration Commission, will remain unchanged.