Henan Dayou Energy shares surge despite financial decline, major shareholder pledges stock

Henan Dayou Energy Co., Ltd. announced an abnormal fluctuation in its stock trading, with its share price increasing by 184.44% between October 10 and November 17, 2025. This surge significantly outpaced the Shanghai Composite Index (up 0.97%) and the coal mining and processing industry index (up 20.60%), leading the company to issue a warning about potential irrational speculation and overvaluation, as its price-to-book ratio of 5.82 is substantially higher than the industry average of 1.70.

The company's financial performance in the first three quarters of 2025 showed a decrease in operating revenue to 3.11 bn yuan, a reduction of 762m yuan from the previous year. Net profit attributable to shareholders was a loss of 1.12 bn yuan, down 336m yuan year-on-year. This indicates that the stock’s appreciation has significantly detached from the company's fundamentals.

Concurrently, a subsidiary of the controlling shareholder, pledged 60,000,000 shares of Henan Dayou Energy on November 17, 2025, for routine operational financing. Following this, the subsidiary's cumulative pledged shares total 261,000,000, representing 48.11% of its total holdings and 10.92% of the company’s total share capital. The company clarified that this pledge is unrelated to any major asset restructuring or performance compensation.