South Manganese Investment Limited released its Interim Report 2026 for the six months ended 30 June 2026.

Revenue and Profitability • Revenue rose 22.3% year on year to HK$3.56 billion, driven chiefly by higher selling prices and volumes in core products. • Gross profit expanded 42.5% to HK$788.22 million, lifting the gross margin to 22.1% from 19.0% a year earlier. • Operating profit advanced 118.7% to HK$452.70 million. • Profit attributable to shareholders more than doubled to HK$359.12 million (1H 2025: HK$172.70 million). • Basic and diluted EPS increased to HK$0.0727 from HK$0.0473.

Segment Performance • EMM and alloying materials: Revenue climbed 35.7% to HK$1.40 billion; segment profit reached HK$302.04 million as the gross margin improved to 26.0% (1H 2025: 13.1%). • Battery materials: Revenue grew 15.5% to HK$870.94 million; segment profit was HK$229.51 million, with a gross margin of 31.7%. • Manganese mining: Revenue slipped 5.2% to HK$682.57 million, yet segment profit rose to HK$85.94 million as the gross margin widened to 21.3%. • Trading and other business: Revenue increased 49.5% to HK$613.27 million; gross profit stood at HK$3.01 million amid a 0.5% margin.

Cash Flow and Balance Sheet • Net cash generated from operations amounted to HK$484.35 million, down from HK$642.61 million in 1H 2025. • Cash and cash equivalents totaled HK$503.82 million at period end (31 December 2025: HK$807.00 million). • Net current liabilities narrowed to HK$1.20 billion from HK$1.44 billion at year-end 2025. • Net gearing improved to 52.5% (31 December 2025: 66.6%). • The board reported sufficient working capital following post-period loan renewals of HK$555.40 million.

Capital and Dividends • Total equity increased to HK$2.99 billion (31 December 2025: HK$2.50 billion). • No interim dividend was declared.

Post-Period Event • On 18 August 2026, the company entered a placing agreement for up to 987.40 million new shares at HK$0.314 each, aiming to raise gross proceeds of approximately HK$310.04 million.

Audit and Governance The interim results were reviewed by the Audit Committee. The company confirmed full compliance with the Corporate Governance Code and the Model Code governing directors’ securities transactions.

Outlook Management noted continued monitoring of global economic conditions and reaffirmed focus on cost control, operational efficiency and prudent capital management to support sustainable growth.