SOUTH MANGANESE (01091) saw its shares tumble more than 12%. As of the time of writing, the stock was down 11.54% to HKD 0.46, with a turnover of HKD 16.58 million. The decline follows an announcement made by SOUTH MANGANESE on the evening of January 27, stating that the board had noted the recent emergence of certain online materials concerning the company's operational status. The company indicated that the primary raw materials for its core products, electrolytic manganese metal and electrolytic manganese dioxide, include manganese ore, sulfuric acid, and anode plates, the costs of which have risen over the past year. In response, the company has been periodically reviewing and adjusting its cost structure and has implemented appropriate measures to control and reduce production costs. Furthermore, the mining license for its wholly-owned subsidiary, the Tiandeng Branch, expired on December 2, 2024. The application for a new mining license is currently still in process. Given that a valid mining license has not yet been obtained, a portion of the manganese ore business at the Tiandeng Branch has been temporarily suspended, resulting in significant losses. The company is actively following up on the relevant application matters. Due to persistently weak demand for manganese ore in the Zunyi region and high personnel costs, the operating performance of the non-wholly-owned subsidiary, Zunyi Company, has resulted in severe losses. The company has been continuously evaluating feasible plans to improve the operational situation of Zunyi Company.