Inner Mongolia Xingye Silver & Tin Mining Co., Ltd. (000426.SZ) experienced an abnormal decline in its share price in early February 2026, resulting from a combination of contributing factors. According to market analysis from when the company's stock hit the downward limit on February 3, 2026, the immediate causes centered on financial risks and weak performance at its subsidiaries. Specific issues include a high volume of guarantees, with the total guarantee amount reaching 93.19% of net assets, approaching a warning threshold and increasing financial risk. Additionally, subsidiary performance has declined; for instance, Rongguan Mining reported a 64.2% year-on-year decrease in net profit for the first three quarters of 2025, while its financial expenses surged by 73.46%. Production declines for some mineral products, coupled with operating cost growth outpacing revenue, have adversely impacted the company's operations and financial health, raising investor concerns. The company is also facing short-term earnings pressure. Although revenue for the first three quarters of 2025 increased 24.36% year-on-year, the growth rate of net profit attributable to shareholders slowed to just 4.94%. This was mainly due to production decreases at subsidiaries like Yinman Mining, which suspended operations following a safety incident in the first half of 2025. Consequently, the company was unable to fully capitalize on rising metal prices, leading to weaker performance compared to the industry average.
The broader sector context also played a role. The non-ferrous metals sector is highly sensitive to macroeconomic conditions and market supply-demand dynamics. During the period of share price volatility for Inner Mongolia Xingye Silver & Tin Mining, the overall non-ferrous metals sector performed poorly, with capital potentially flowing out to other market hotspots, thereby putting downward pressure on individual stock prices. For example, on February 13, 2026, the non-ferrous metals sector fell 3.36% for the day. From a technical perspective, the stock faced adjustment pressure. After reaching a record high of 74.8 yuan on January 29, 2026, upward momentum weakened and divergence between bulls and bears increased. Technically, the share price subsequently continued to decline, closing at 48.09 yuan on February 13, below its 20-day moving average of 54.93 yuan, indicating technical adjustment pressure.
During this period of share price fluctuation, Sun Kai, a company director, vice president, and board secretary, increased his holdings by 40,000 shares on February 3, 2026, demonstrating management's confidence in the company's long-term development. Furthermore, fluctuations in the market prices of the company's main products, silver and tin, were also cited by the company as one of the reasons for the abnormal share price movement. The above information is based on publicly available data and does not constitute investment advice.
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