According to Zhitong Finance App, China Baiyin Group (00815) issued an announcement. Compared with the net profit attributable to the owners of the Company for the six months ended June 30, 2025 (the first half of 2025), the Group expects to record a net loss attributable to the owners of the Company in the first half of 2026 of 15 million yuan to 25 million yuan. Excluding the share-based payment expenses disclosed below and the impact of losses due to sales transactions, the Group expects to record net profit attributable to the Company's owners of $66 million to $76 million in the first half of 2026.
The expected shift from net profit to net loss is mainly due to the following factors: (i) for the Group's manufacturing business segment, the increase in silver prices in the first half of 2026, combined with a decrease in demand for various silver applications, led to a decline in the Group's silver ingot sales in the first half of 2026; (ii) the Group confirmed share-based payment expenses of about $57 million in accordance with the share award scheme adopted by the Company on June 18, 2025, leading to an increase in administrative expenses in the first half of 2026; and (iii) the Group recorded a loss on sales transactions in the first half of 2026 34 million yuan. This is due to the fact that the Group's shares in its associated company Everest Gold were diluted after Everest Gold Group Co., Ltd. (stock code: 1815) (Everest Gold) completed the placement of new shares on February 6, 2026 and March 13, 2026, respectively.
The above factors are partially offset by the following factors: (iv) As far as the Group's manufacturing business segment is concerned, the Group expects gross profit to increase in the first half of 2026 despite a decrease in silver ingot sales as disclosed above, mainly due to the fact that most of the silver ingots sold by this division during the period were silver inventory with relatively low procurement costs for the Group.