SOUTH MANGANESE (01091) has announced a positive profit forecast. Compared to an attributable loss of approximately HKD 725 million for the 2024 financial year, the group expects to return to profitability for the year ending December 31, 2025. The projected profit attributable to owners of the company for the 2025 financial year is no less than HKD 140 million.

The primary reasons for the anticipated turnaround in 2025 are as follows: 1. Management effectively optimized the product mix for its trading business, shifting it from a gross loss in 2024 to a gross profit in 2025. 2. Significant results were achieved from comprehensive cost control measures implemented across key operational areas, including production, procurement, materials management, tendering, and general operations. 3. There was a reduction in impairment losses on financial assets. In 2024, an impairment provision for receivables from an associate was recognized due to the settlement of a guarantee liability. This liability arose from a corporate guarantee provided by the group for bank financing obtained by its associate, Dushan Jinmeng Manganese Industry Co., Ltd.