South Manganese Investment Limited (the “Company”) provided an update regarding its operating conditions. According to the announcement, the Company has incurred increased costs for key raw materials, including manganese ore, sulfuric acid, and anode plates, which has prompted ongoing reviews and adjustments to its cost structure.

The announcement states that the mining right of a wholly-owned subsidiary, South Manganese Group Limited Tiandeng Manganese Mine Branch, expired on 2 December 2024 and is still under application. As a valid mining right has yet to be obtained, part of the manganese mine operations has been suspended, causing substantial losses.

Additionally, persistently weak demand for manganese ore in the Zunyi region and high staff costs have resulted in significant losses for Guizhou Zunyi Hui Xing Ferroalloy Company Limited, a non-wholly owned subsidiary of the Company. Feasible solutions are under ongoing evaluation to improve its operating performance.

Shareholders and potential investors are advised to exercise caution when dealing in the Company’s shares.