SOUTHGOBI (01878) announces its performance in the first three quarters, with a net loss attributable to equity holders of approximately $56.05 million, a turnaround from profit to loss compared to the same period last year.

SOUTHGOBI (01878) announced its performance for the first three quarters of 2025, with revenue of approximately 427 million US dollars, a year-on-year increase of 33.95%; the net loss attributable to equity holders of the company was approximately 56.054 million US dollars, a year-on-year change from profit to loss; loss per share was USD 0.189. The announcement stated that the growth in revenue was driven by the expansion of the sales network, diversification of customer base, and expansion of the coal product category in the product portfolio leading to increased sales volume. The company incurred an operating loss of 28.9 million US dollars in the first nine months of 2025, compared to an operating profit of 74.9 million US dollars in the first nine months of 2024. The negative impact on financial performance was due to the decrease in average realized selling price and changes in the product portfolio, as the company sold more high-cost processed coal in the second quarter of 2025 and incurred a coal inventory impairment loss of 12.3 million US dollars. The company's sales volume in the first nine months of 2025 was 8.1 million tons, compared to 4.4 million tons in the first nine months of 2024. The average realized selling price per ton in the first nine months of 2025 was 53.0 US dollars, compared to 73.3 US dollars in the first nine months of 2024. This decrease was mainly due to the impact of the downturn in the Chinese coal market since 2024, leading the company to change its product portfolio to sell a higher proportion of lower-priced coal products.