Luoping Zinc & Electricity has disclosed its earnings forecast, projecting a net loss attributable to shareholders of 60 to 80 million yuan for the first half of 2026, compared with a loss of 92.1902 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 59 to 79 million yuan, versus a loss of 65.4627 million yuan a year earlier. Basic loss per share is estimated at 0.19 to 0.25 yuan. The company stated that increased sales of its main products, zinc ingots and zinc alloys, along with higher selling prices for by-products, drove year-on-year revenue growth. However, rising raw material procurement costs pushed up operating costs, and a significant decline in zinc metal processing fees led to a year-on-year increase in inventory impairment provisions. On the other hand, unit processing costs decreased due to refined management, and non-operating expenses also fell year-on-year, resulting in a narrower loss compared with the same period last year.
Yunnan luoping Zinc & Electricity Co LtdRising raw material procurement costs and a significant decline in zinc metal processing fees increased operating costs and inventory impairment provisions, despite revenue growth.
The company's disclosure of rising raw material costs and declining processing fees signals supply-side pressure on zinc, which is negative for zinc futures.