China Silver Group Limited reported a sharp turnaround to a net loss attributable to owners of RMB24.10 million for the six months ended 30 June 2026, versus a RMB54.91 million profit a year earlier. The shift was driven by a 75.7% decline in revenue to RMB508.68 million and exceptional charges totalling RMB95.70 million, comprising RMB56.78 million in share-based payment expenses and a RMB38.91 million loss on the deemed disposal of shares in associate Mount Everest Gold Group.

Despite lower sales volumes, the Manufacturing segment—now the group’s sole consolidated operation following the December 2025 deconsolidation of Mount Everest Gold—lifted gross profit 141.2% to RMB101.80 million. Gross margin expanded to 20.0% from 2.0% in H1 2025, reflecting sales of lower-cost silver inventories into a higher price environment. Selling and distribution expenses fell 79.1% to RMB0.30 million, while administrative expenses surged to RMB64.13 million due primarily to the share-based payment charge.

Total assets reached RMB2.14 billion, with cash and bank balances rising to RMB605.98 million at period-end, up from RMB232.32 million at 31 December 2025. Net current assets increased to RMB649.16 million, placing the company in a net cash position and producing a net gearing ratio of –27.8%. Bank borrowings stood at RMB109.50 million, broadly unchanged from year-end 2025.

Inventory days lengthened to 112 from 19.7, mirroring reduced turnover amid elevated silver prices. No trade receivables were reported, consistent with the group’s advance-payment sales model.

During the half, China Silver completed a HK$464.10 million (net HK$463.25 million) share placement, with proceeds earmarked for exploration of the Shigatse mine in Tibet and general working capital. None of these funds had been utilised as at 30 June 2026. The company also continued to hold a 36.09% interest in Mount Everest Gold and a 20.00% stake in Jiangxi Yiding Trading, valued in total at RMB1.04 billion.

Capital expenditure in H1 2026 totalled RMB0.40 million, while no interim dividend was declared. The board reaffirmed its focus on optimising the manufacturing business and supporting upstream exploration projects to secure raw material supply and enhance long-term shareholder value.