Core Viewpoints: Why has Baiyin Nonferrous Group Co.,Ltd. failed to recover massive financial management funds for years, and why have they not been fully disclosed? Are the funds behind this suspected of involving interest transfer schemes? Meanwhile, why do internal control defects frequently occur at the company? Should companies without actual controllers be vigilant about the risk of being hollowed out by insiders?
Driven by favorable market conditions in the non-ferrous metals sector, Baiyin Nonferrous Group's stock price has shown unusual movements.
According to announcements, Baiyin Nonferrous Group's stock price experienced cumulative closing price increases exceeding 20% over three consecutive trading days on September 30, 2025, October 9, 2025, and October 10, 2025, constituting abnormal stock trading volatility.
Notably, Baiyin Nonferrous Group's fundamentals appear to be moving in the opposite direction of its stock price.
The 2025 interim report shows that the company's operating revenue in the first half was 44.559 billion yuan, down 15.28% year-on-year; net profit attributable to shareholders was -217 million yuan, down 1,859.82% year-on-year; non-recurring net profit attributable to shareholders was -11.1725 million yuan, down 180.19% year-on-year; basic earnings per share were -0.03 yuan.
At the same time, the company frequently experiences internal control issues, with massive financial management funds not recovered upon maturity and incomplete disclosure, as if the company has unresolved "bad accounts."
Three Major Risks Behind Stock Price Anomalies
Baiyin Nonferrous Group's stock price anomalies may benefit from catalysts in the non-ferrous metals sector.
The non-ferrous metals sector has performed strongly recently. On October 9, A-shares opened with the CSI Non-ferrous Metals Index surging 7.97% in a single day, closing at 2,865.82 points, with trading volume exceeding 163.5 billion yuan, setting a new high for single-day trading volume this year.
This may be the result of multiple factors resonating from policy, supply and demand changes. Industry insiders indicate that on the policy side, eight departments jointly issued the "Non-ferrous Metal Industry Stable Growth Work Plan," setting growth targets and encouraging high-end and green transformation; on the supply side, constraints exist as major global mining regions (such as Indonesia and Chile) frequently experience supply disruptions, copper mine supply-demand gap expectations widen, and smelting processing fees remain at low levels; on the demand side, new energy (photovoltaic, electric vehicles), power infrastructure, AI data centers and other fields continue to see growing demand for metals.
From the 2025 interim report, the company's cathode copper revenue was 21.232 billion yuan, accounting for 47.65% of total revenue; gold revenue was 8.318 billion yuan, accounting for 18.67%; zinc ingot revenue was only 3.294 billion yuan, accounting for 7.39%.
However, while the company's stock price continues to soar, investors may need to pay attention to the following three major risks.
First, is there market risk of overvalued stock prices?
As of October 10, 2025, the company belongs to the non-ferrous metal smelting and rolling processing industry in the China Association for Public Companies industry classification. Comparing the company's P/E ratio with 88 listed companies in the same industry, excluding 14 listed companies with negative static P/E ratios, the industry average static P/E ratio is 87.27 times, while Baiyin Nonferrous Group's static P/E ratio is 465.60 times, at a relatively high level; excluding 15 listed companies with negative dynamic P/E ratios, the industry average dynamic P/E ratio is 78.59 times, while Baiyin Nonferrous Group's dynamic P/E ratio is -253.04 times.
Second, the company's information disclosure violations have been confirmed as major omissions.
On September 10, Baiyin Nonferrous Group issued an announcement disclosing that the company recently received a "Case Filing Notice" issued by the China Securities Regulatory Commission. Due to the company's suspected illegal information disclosure violations, the CSRC has decided to file a case against it. On September 30, 2025, the company received an "Administrative Penalty Prior Notice" and "Administrative Regulatory Measures Decision" issued by the Gansu Securities Regulatory Bureau, imposing penalties on the company and related personnel and implementing regulatory measures.
Third, the company's shares are pledged to the maximum by major shareholders.
The company's shareholder CITIC Guoan Industrial Group Co., Ltd. holds 2,250,000,000 shares of the company, accounting for 30.39% of the company's total share capital. Due to its execution of the restructuring plan approved by the court for the company's former largest shareholder, it has pledged some of its Baiyin Nonferrous Group shares. As of the announcement date, CITIC Guoan Industrial Group Co., Ltd. has cumulatively pledged 2,217,610,300 company shares, accounting for approximately 98.56% of its total shareholding and 29.95% of the company's total share capital.
Where Are Baiyin Nonferrous Group's Bad Accounts?
The first bad account: Massive financial management funds not redeemed - does this constitute fund occupation or interest transfer?
From August 2017 to March 2018, Baiyin Nonferrous Group successively purchased 3 billion yuan in financial products. In 2019, the above financial products were not recovered as scheduled, and were not recovered with principal and related returns until December 2024. This raises our question: for whom was the company providing financial management for its massive financial funds that were not recovered? Is there an interest transfer scheme?
According to announcement materials, Baiyin Nonferrous Group disclosed the beginning and ending balances of 3 billion yuan financial products in the other current assets section of its annual reports from 2019 to 2024, but failed to comply with Article 41, Item 3 of the "Content and Format Guidelines for Information Disclosure of Companies Issuing Securities to the Public No. 2 - Content and Format of Annual Reports (2017 Revision)" (CSRC Announcement [2017] No. 17) and Article 55, Item 3 of the "Content and Format Guidelines for Information Disclosure of Companies Issuing Securities to the Public No. 2 - Content and Format of Annual Reports (2021 Revision)" (CSRC Announcement [2021] No. 15), which require disclosure of specific details of the 3 billion yuan financial products in annual reports from 2019 to 2024. Baiyin Nonferrous Group's annual reports from 2019 to 2024 had major omissions in information disclosure.
Wang Pugong served as General Manager of Baiyin Nonferrous Group from October 2018 to July 2020, and has served as Chairman of Baiyin Nonferrous Group from July 2020 to present. He was aware of situations such as Baiyin Nonferrous Group's financial product purchases not being recovered as scheduled, but failed to organize Baiyin Nonferrous Group to disclose according to regulations, and signed guarantees that Baiyin Nonferrous Group's annual reports from 2019 to 2024 were true, accurate, and complete. This is suspected of violating Article 82, Paragraph 3 of the Securities Law, making him directly responsible management personnel for Baiyin Nonferrous Group's annual report information disclosure violations.
The second bad account: Why do internal control defects occur frequently, and are related insiders suspected of embezzlement?
On November 27, 2023, the company's wholly-owned subsidiary Shanghai Honglu International Trading Co., Ltd. (hereinafter referred to as Shanghai Honglu) discovered that three customers - Shijiazhuang Xianhe Trading Co., Ltd. (hereinafter referred to as Xianhe Company), Hebei Guohe Investment Group Co., Ltd. (hereinafter referred to as Guohe Company), and Shanghai Kuanyu Trading Co., Ltd. (hereinafter referred to as Kuanyu Company) - had serious discrepancies between zinc ingot delivery quantities and actual payments, with a difference of approximately 388 million yuan, accounting for 466.91% of the company's net profit attributable to shareholders.
In November 2023, the company discovered a difference of approximately 389 million yuan between delivered product values and received payments, caused by over-delivery of zinc ingot products, including: discovering over-delivery of products worth approximately 205 million yuan to Xianhe Company; discovering over-delivery of products worth approximately 120 million yuan to Guohe Company; discovering over-delivery of products worth approximately 64 million yuan to Kuanyu Company.
According to announcement materials, during business execution with Xianhe Company and Kuanyu Company, individual business personnel in the marketing center engaged in fraud and illegally delivered goods, suspected of disciplinary and legal violations, leading to problems in payment confirmation and causing over-delivery of products; during business execution with Guohe Company, individual business personnel in the marketing center failed to strictly control payment arrival situations, leading to delivery before payment and over-delivery of products.
When investigating the company's sales department's irregular goods delivery incident, the Baiyin Municipal Commission for Discipline Inspection and Supervision again discovered company internal control defects. Specifically, former employees of Baiyin Nonferrous Group's marketing center sales department and copper company employees, together with external personnel, embezzled the company's cathode copper products through forging sales documents and other means, suspected of criminal activity. In January 2024, as designated by the Baiyin Municipal Commission for Discipline Inspection and Supervision, the Pingchuan District Commission for Discipline Inspection and Supervision filed a case to investigate the above suspected criminal issues and took detention measures against related personnel, with the case involving an amount of 1,565,779,510 yuan.
It should be noted that the company's main shareholders are subsidiaries of central enterprises, state-owned enterprises, and local state-owned assets, belonging to a corporate governance structure without controlling shareholders or actual controllers.
The company made error corrections to the accounting treatment of prepayments to three suppliers of its subsidiary Shanghai Honglu - Guoan Shicang (Shanghai) Industrial Resources Co., Ltd. (formerly known as CITIC Guoan (Shanghai) Industrial Resources Co., Ltd., abbreviated as Industrial Resources), Rudong Shangming Metal Materials Co., Ltd. (abbreviated as Rudong Shangming), and Shanghai Xuyang International Trading Co., Ltd. (abbreviated as Shanghai Xuyang) - and made retrospective adjustments to the company's financial statements from 2019 to 2023. The company's accounting error corrections resulted in reductions of 41.04%, 65.29%, and 58.28% in net profit attributable to shareholders for 2019, 2020, and 2021 respectively, and an increase of 30.00% in net profit attributable to shareholders for 2023.
It should be noted that the above-mentioned Industrial Resources is mainly engaged in precious metals and metal materials trading business, belonging to a company under CITIC Guoan Group, a major shareholder of Baiyin Nonferrous Group. According to transaction detail materials, on June 1, 2018, Baiyin Nonferrous Group's Shanghai company signed a copper purchase and sales contract with Industrial Resources, agreeing that Shanghai company would purchase 3,900 tons of cathode copper from Industrial Resources for 200.07 million yuan, paying a prepayment of 200 million yuan. On June 27, 2018, Industrial Resources supplied 1,562.029 tons of copper to Shanghai company, worth 80.1321 million yuan. Ultimately, due to changes in Industrial Resources' own situation, it failed to continue supply, and Shanghai company continued to urge the company to fulfill its contractual obligations.
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