SOUTHGOBI (01878) announced its financial results for the first three quarters of 2025, with revenue reaching approximately $427 million, a 33.95% increase year-on-year. However, the company recorded a net loss attributable to equity holders of about $56.054 million, compared to a profit in the same period last year. The loss per share stood at $0.189.

The growth in revenue was driven by an expanded sales network, diversified customer base, and increased sales volume due to a broader range of coal products in the portfolio. Despite this, the company reported an operating loss of $28.9 million for the first nine months of 2025, a significant decline from the operating profit of $74.9 million in the same period of 2024.

The financial performance was negatively impacted by a decline in the average realized selling price and changes in the product mix. This was primarily due to the company selling more processed coal with higher production costs in Q2 2025, as well as recognizing a coal inventory impairment loss of $12.3 million.

Total sales volume for the first nine months of 2025 reached 8.1 million tons, up from 4.4 million tons in the same period of 2024. However, the average realized selling price dropped to $53.0 per ton, compared to $73.3 per ton in the prior-year period. This decline was mainly attributed to the downturn in China's coal market since 2024, prompting the company to adjust its product mix toward lower-priced coal products.