Shares of JIANGXI COPPER (00358) plummeted 5% in intraday trading, as investors reacted to the company's recent quarterly results and concerns over declining copper concentrate processing fees. The stock's sharp decline comes despite the company reporting a 35.2% year-on-year increase in net profit for the third quarter of 2025.

According to the company's latest financial report, JIANGXI COPPER posted revenue of RMB 139.09 billion in Q3, up 14.09% from the previous year. While net profit reached RMB 1.849 billion and adjusted net profit attributable to shareholders rose an impressive 94.7% to RMB 1.91 billion, the company's gross profit declined by RMB 1.1 billion quarter-on-quarter to RMB 4.08 billion. This decrease was primarily attributed to lower copper concentrate processing fees, which have become a growing concern in the industry.

Guosen Securities highlighted the tightening global copper concentrate supply, noting a significant gap between long-term contract processing fees (USD 21/ton) and spot rates (below USD -40/ton). While smelters relying on long-term contracts remain profitable, those utilizing spot purchases are facing margin pressure. However, the brokerage expects limited further downside from processing fees this quarter for JIANGXI COPPER, citing the company's 2025 cathode copper production target of 2.37 million tons and its flexibility in adjusting copper concentrate and scrap usage ratios. Despite the current challenges, analysts believe the impact on JIANGXI COPPER's performance may be manageable in the near term.