CHI SILVER GP (00815) issues a profit warning, expecting a net loss of 15 million to 25 million yuan for the interim period.

CHI SILVER GP (00815) announced that, compared to the approximately RMB 54.9 million attributable to owners of the Company for the six months ending June 30, 2025 (the first half of 2025), the Group expects to record a net loss attributable to owners of the Company in the range of RMB 15 million to RMB 25 million for the first half of 2026. After excluding the impact of the share-based payment expenses disclosed below and the losses from deemed disposal, the Group expects to record a net profit attributable to owners of the Company of between RMB 66 million and RMB 76 million for the first half of 2026. The anticipated shift from net profit to net loss is mainly attributed to the following factors: (i) For the Group's manufacturing segment, the increase in silver prices in the first half of 2026, along with a decrease in demand for various silver applications, led to a decline in silver ingot sales; (ii) The Group recognized approximately RMB 57 million in share-based payment expenses under the share award scheme adopted by the Company on June 18, 2025, resulting in increased administrative expenses in the first half of 2026; and (iii) The Group recorded a deemed disposal loss of approximately RMB 34 million in the first half of 2026, due to the dilution of the Group's equity in its associate, EVEREST GOLD Group Limited (stock code: 1815), following the completion of a placing of new shares on February 6 and March 13, 2026. The above factors are partially offset by the following: (iv) For the Group's manufacturing segment, despite the decrease in silver ingot sales as mentioned above, the Group expects the gross profit in the first half of 2026 to still increase, mainly because a significant portion of the silver ingots sold during the period were from silver inventories purchased by the Group at relatively low costs.