Group 1 - The nuclear power and controllable nuclear fusion concepts continue to rise, with China Nuclear Technology hitting the daily limit up [1] - Several stocks including Huaneng Welding, Atlantic, Baobian Electric, Shangwei Co., China General Nuclear Power Technology, Rongfa Nuclear Power, and Harbin Air Conditioning have also seen significant gains [1] - Guoguang Electric, Jiusheng Electric, and Zhongzhou Special Materials have increased by over 10% [1] Group 2 - In the Hong Kong market, China Nuclear International experienced a surge of 180% at one point [1]

中核国际持续拉升，一度涨超180%，公司为中核集团旗下唯一海外铀资源运作平台。 ...

Core Viewpoint - The recent surge in nuclear energy stocks in A-shares is linked to the positive developments in the U.S. nuclear energy sector, particularly following President Trump's signing of executive orders aimed at reforming the nuclear industry [1][3]. Group 1: Market Performance - A-shares nuclear energy stocks saw significant gains, with nearly 20 related stocks hitting the daily limit or rising over 10% [1][3]. - In the Hong Kong market, China National Nuclear Corporation experienced a surge of over 180% [1]. - The U.S. nuclear energy stocks also rallied, with Lightbridge rising by 42.59% and NANO Nuclear increasing by over 30% [1]. Group 2: U.S. Policy Impact - Trump's executive orders aim to accelerate the approval process for nuclear reactors used for defense and AI, with a goal to quadruple nuclear power output in the next 25 years [3]. - The orders also include provisions for the construction of 10 large reactors by 2030 and adjustments to regulatory processes for experimental reactors [3]. Group 3: Global Nuclear Energy Trends - The nuclear energy revival cycle has been ongoing since 2019, with developing countries like China continuing to approve and construct new nuclear units [3][4]. - The anticipated increase in nuclear power demand is expected to benefit uranium as a nuclear fuel, leading to a tighter supply-demand balance [3][4]. Group 4: Nuclear Energy Advantages - Nuclear power is highlighted as a clean, safe, and efficient energy source, with annual utilization hours exceeding 7000, making it the most efficient among all energy sources [4]. - The role of nuclear energy in addressing climate change and promoting energy transition is emphasized, with potential applications in desalination, hydrogen production, and medical protection [4]. Group 5: Nuclear Fusion Developments - The nuclear fusion sector has entered a phase of intensive catalysis, with significant gains in related stocks since early May, particularly in controlled nuclear fusion [5][7]. - The ITER project, a major international collaboration, has achieved significant milestones, marking progress towards commercializing controlled nuclear fusion [6][7]. - Continued investment and project developments in nuclear fusion are expected to accelerate industry growth, benefiting related companies [6][7].

智通财经5月26日电，港股中核国际涨幅扩大至70%，公司为中核集团旗下唯一海外铀资源运作平台。 ...

暗盘资金一眼洞悉庄家意图>> 港股中核国际涨幅扩大至70%，公司为中核集团旗下唯一海外铀资源运作平台。 ...

港股中核国际午后涨超60% 机构分析天然铀长牛可期 金十数据5月26日讯，中核国际(02302.HK)午后持续走强涨超60%。消息面上，美国总统特朗普此前签 署4项行政命令推动美国核能产业改革，包括扩大美国核能规模、核能产业链、缩短核电项目审批周期 等。机构分析称，作为核电燃料，天然铀将显著受益此次远期核电需求预期增长，且天然铀供需偏紧格 局或将进一步强化，天然铀长牛可期。 ...

Group 1: Nuclear Power Projects Approval - The State Council approved several nuclear power projects, including the Zhejiang Sanmen Phase III, marking the first approval of domestic nuclear power projects in 2025, with a total investment exceeding 200 billion yuan [1] - A total of five projects and ten new units were approved, maintaining a consistent approval pace with over ten units approved annually since 2022 [1] - The new projects will utilize domestically developed third-generation nuclear technology, including eight Hualong One units [1] Group 2: Nuclear Power Industry Growth - China has the largest operational and under-construction nuclear power capacity globally, with 58 operational units and a total installed capacity of 60.96 million kilowatts [2] - In 2024, the investment in nuclear power construction reached 146.9 billion yuan, a historical high, reflecting a growth of 52 billion yuan from the previous year [2] - Nuclear power contributes significantly to electricity supply, especially in coastal regions, with five provinces generating over 20% of their electricity from nuclear power [2] Group 3: Global Nuclear Energy Trends - Major tech companies, including Google and Amazon, have committed to tripling global nuclear energy generation by 2050, highlighting the growing importance of nuclear energy in meeting future electricity demands [3] - The demand for electricity from data centers, particularly for AI operations, is expected to increase significantly, making nuclear energy a viable option for stable and clean power supply [3] Group 4: Investment Opportunities in Nuclear Sector - Companies involved in nuclear technology and equipment are expected to benefit from the accelerated approval of third-generation nuclear units and ongoing developments in fourth-generation and SMR technologies [4] - Specific companies to watch include Dongfang Electric, which is poised to benefit from the upcoming nuclear construction cycle, and China National Nuclear Corporation, which has a comprehensive nuclear technology industrial system [5][6] - China General Nuclear Power Corporation reported a revenue increase of 4.06% in the first three quarters of 2024, indicating stable performance amid rising operational costs [6]

Uranium Market Dynamics - In the first half of 2024, spot uranium prices surged to approximately US$107 per pound, the highest level since August 2007, but declined to a range of US$70–US$75 per pound by the end of the year[16]. - The long-term price of natural uranium rose to approximately US$80 per pound by the end of 2024, ending a three-year inversion between long-term and spot prices[17]. - Supply chain disruptions and geopolitical developments continued to challenge the natural uranium market throughout 2024[16]. - The decline in spot uranium prices was attributed to high prices not being supported by supply-demand fundamentals and financial market fluctuations affecting uranium investment funds[16]. - The active involvement of large investment funds in the uranium spot market has increased market volatility and influenced supply-demand dynamics[16]. - The increase in long-term uranium prices reflects concerns about future supply availability and rising mining costs[17]. - In 2024, global natural uranium production is expected to reach 58,800 tonnes, a 7% increase from 55,000 tonnes in 2023, but still below the annual demand of 65,000–70,000 tonnes[45]. - The geopolitical policy shift in May 2024 banning imports of Russian low-enriched uranium is expected to restructure the global nuclear fuel supply landscape, providing upward momentum for uranium prices[38]. Financial Performance - The Group generated revenue from uranium trading of approximately HK$1,841,347,000 for the Year, a significant increase from approximately HK$580,958,000 in 2023, corresponding to sales of approximately 5.77 million pounds of natural uranium[23]. - The net profit for the Year increased to approximately HK$195,000,000, up from approximately HK$106,315,000 in 2023, representing a growth of approximately 83.5%[24]. - The gross profit from trading of natural uranium was approximately HK$234,155,000, compared to approximately HK$127,053,000 in 2023, with a gross profit margin of approximately 12.7%[32]. - The gross profit margin decreased by approximately 9.2% from 21.9% in 2023 to 12.7% in the Year[32]. - The cost of sales for the Year was approximately HK$1,607,192,000, an increase of 254.1% from HK$453,905,000 in the 2023 Year, resulting in a gross profit of approximately HK$234,155,000[57]. - A gain on the disposal of interest in a subsidiary was approximately HK$23,414,000 for the Year, compared to nil in the 2023 Year[65]. - Other income and gains amounted to approximately HK$12,885,000, an increase from approximately HK$6,898,000 in the 2023 Year, primarily due to increased bank interest income[63]. - The Company recorded a significant increase in net profit for the Year to approximately HK$195,000,000, up from approximately HK$106,315,000 in the 2023 Year[62]. Strategic Initiatives - The Group aims to seek opportunities in the uranium products sector while safeguarding against risk exposure[18]. - The Group plans to actively seek high-quality uranium resources projects, focusing on in-production projects to complement the development of its Parent Group[27]. - The Group aims to become the Parent Group's major platform for overseas uranium resources exploration, development, and trading under the 2024 Framework Agreement[28]. - The Group will continue to participate in international market bidding and explore various financing channels to expand its uranium trading business[29]. - The Group aims to leverage the strengths of its parent company, CNNC, to develop projects with reasonable returns and explore investment opportunities in uranium resources[81]. - The Group aims to focus on developing its uranium products trading business and actively seek high-quality uranium resource projects, particularly in-production projects[75]. Operational Developments - The Group fulfilled outstanding uranium product demand from its parent group carried over from 2023 under a continuing connected transaction framework[14]. - The Group facilitated trades of 1.50 million pounds of natural uranium for Rössing, generating commission income of approximately HK$18,775,000 from the Uranium Purchase Transaction[23]. - The Group completed the disposal of its wholly-owned subsidiary, CNNC International (HK) Limited, for a total cash consideration of approximately HK$162,434,000, recognizing a gain of approximately HK$23,414,000 from the transaction[98]. - The Group is working on a preliminary production restart plan for its associate, Société des Mines d'Azelik S.A., which is currently facing cash flow issues[54]. Environmental and Social Responsibility - The Group engaged in community charity activities, including setting up a drinking water supply point and providing funds for local schools[126]. - The Group's total greenhouse gas emissions for the reporting period were approximately 15.03 tonnes of CO2 equivalent, a slight decrease from 15.19 tonnes in the previous year[144]. - The annual emission intensity remained stable at approximately 0.03 tCO2e/sq.m. for both 2024 and 2023[140]. - The Group has complied with all relevant environmental laws and regulations in the regions where it operates during the reporting period[133]. - The Group actively participates in community charitable activities, supporting vulnerable communities and improving local education quality[131]. Human Resources and Employment Practices - The Group had a total of 35 full-time employees as of December 31, 2024, an increase from 32 in 2023[167]. - Employee distribution: 17% in Hong Kong SAR, 71% in PRC, and 11% in Mongolia for 2024[169]. - Gender distribution: 57% male and 43% female in 2024, compared to 50% for both genders in 2023[169]. - The percentage of employees trained increased to 89% in 2024 from 75% in 2023[181]. - The Group strictly complies with local employment laws and has reported no significant non-compliance issues during the year[172]. - The Group prohibits the employment of child labor and conducts regular reviews of the hiring process to ensure compliance[184]. - The Group emphasizes employee communication through weekly meetings and team-building activities to enhance staff loyalty[183]. Financial Position and Capital Management - The Group recorded a net cash inflow of approximately HK$427,592,000 for the year, a significant increase from approximately HK$51,042,000 in the previous year[87]. - Total shareholders' funds increased from approximately HK$460,287,000 as of December 31, 2023, to approximately HK$673,884,000 as of December 31, 2024[92]. - The gearing ratio decreased to 0.23 as of December 31, 2024, down from 0.54 as of December 31, 2023[92]. - The Group had net current assets of approximately HK$670,490,000 as of December 31, 2024, compared to approximately HK$226,644,000 as of December 31, 2023[90]. - A revolving loan agreement was entered into with CNNC Treasury Management Co. Limited for a maximum principal amount of US$50,000,000 to support future development in the uranium trading business[93][97].

Core Viewpoint - The global natural uranium market faces challenges in 2024, with price volatility influenced by buyer sentiment and uranium supply, while China National Nuclear Corporation International (CNI) demonstrates strong performance in uranium trading despite external pressures [1][14]. Financial Performance - CNI reported a significant increase in uranium sales, reaching approximately 577 million pounds and total revenue of HKD 1.841 billion, a year-on-year growth of 217% [1]. - The net profit for the year was HKD 195 million, reflecting an 83.4% increase compared to the previous year [1]. - The company's gross profit has shown a compound annual growth rate (CAGR) of 124.7% from 2021 to 2024, with net profit CAGR at 334% during the same period [3]. Operational Efficiency - CNI's return on equity (ROE) improved to 28.9% in 2024 from 23.1% in 2023, driven by enhanced asset turnover despite a decline in net profit margin due to external factors [3][4]. - The company's equity multiplier decreased from 2.15 at the end of 2023 to 1.31 at the end of 2024, and the debt-to-asset ratio fell from 54% to 23% [4]. Market Dynamics - The global uranium market is experiencing a supply-demand imbalance, with increasing demand driven by a global shift towards clean energy and nuclear power [5][6]. - The long-term price of uranium is expected to rise, with long-term contracts reflecting a higher price than spot prices, indicating a tightening supply situation [5]. Strategic Positioning - CNI, as the only overseas uranium resource operation platform under China National Nuclear Group, is well-positioned to benefit from rising uranium prices and domestic demand [7]. - The company is actively exploring international market opportunities and optimizing its asset structure to enhance its uranium trading business [12]. Future Outlook - CNI's strategic focus on expanding its market presence and participating in international tenders is expected to drive long-term growth and value [12][14]. - The ongoing government support for nuclear energy development in China is likely to further bolster CNI's market position and growth potential [9][11].

Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 1,841,347,000, representing a 216% increase from HKD 580,958,000 in 2023[3] - Gross profit for the year was HKD 234,155,000, up 84% from HKD 127,053,000 in the previous year[3] - Net profit for the year reached HKD 195,000,000, a 83.5% increase compared to HKD 106,315,000 in 2023[4] - The company reported a basic and diluted earnings per share of HKD 0.399 for 2024, compared to HKD 0.217 for 2023[4] - The pre-tax profit for the year ended December 31, 2024, was HKD 226,552,000, compared to HKD 123,115,000 in 2023, indicating a growth of 84%[12] - The company's share of profits from associates was HKD 31,952,000 for 2024, slightly down from HKD 32,170,000 in 2023[12] - The company achieved total comprehensive income of approximately HKD 213,597,000, compared to HKD 68,679,000 in 2023, after accounting for other comprehensive income[42] Assets and Liabilities - The total assets less current liabilities amounted to HKD 675,510,000, an increase from HKD 645,558,000 in 2023[6] - The total assets of the company as of December 31, 2024, amounted to HKD 880,057,000, a decrease from HKD 990,862,000 in 2023[13] - The total liabilities decreased significantly to HKD 206,173,000 in 2024 from HKD 530,575,000 in 2023, reflecting a reduction of 61%[13] - The company's net asset value rose to HKD 673,884,000 from HKD 460,287,000 in 2023[6] - As of December 31, 2024, the company's current assets net value is approximately HKD 670,490,000, a significant increase from HKD 226,644,000 as of December 31, 2023[48] - Total shareholder equity increased from approximately HKD 460,287,000 as of December 31, 2023, to approximately HKD 673,884,000 as of December 31, 2024, driven by total comprehensive income for the year[49] Cash Flow and Financing - Cash and cash equivalents increased significantly to HKD 607,031,000 from HKD 180,434,000 in the previous year[5] - The company recorded a net cash inflow of approximately HKD 427,592,000 for the year, primarily due to proceeds from the sale of a subsidiary[47] - The company has secured a revolving loan agreement with China Nuclear Finance Management Co., Ltd. for up to USD 50,000,000, reflecting the parent group's commitment to support the company's future uranium trading business[50][51] - The asset-to-liability ratio improved to 0.23 as of December 31, 2024, down from 0.54 as of December 31, 2023, indicating a stronger financial position[49] Inventory and Sales - The company’s inventory decreased to HKD 1,274,000 from HKD 291,708,000 in 2023, indicating a significant reduction in stock levels[5] - The company sold approximately 5,770,000 pounds of natural uranium, generating revenue of approximately HKD 1,841,347,000, a 217.0% increase compared to HKD 580,958,000 in 2023[36] - The cost of sales was approximately HKD 1,607,192,000, reflecting a 254.1% increase from HKD 453,905,000 in 2023, resulting in a gross profit of approximately HKD 234,155,000 with a gross margin of 12.7%, down from 21.9% in 2023[38] Market and Operations - The revenue from uranium trading was HKD 1,816,774,000, with agency income from uranium procurement services contributing HKD 24,573,000[10] - Revenue from the Chinese market (including Hong Kong) surged to HKD 1,704,606,000 in 2024, up from HKD 455,175,000 in 2023, marking an increase of 274%[14] - The company plans to continue expanding its operations in uranium trading and procurement services, focusing on resource allocation and performance evaluation[10] - The company plans to continue discussions with Mongolian authorities regarding the exploration license expiration for its uranium resource projects in Mongolia[45] - The company is actively communicating with the Mongolian government regarding uranium mining rights, which may provide a more favorable geopolitical environment for its projects[37] Expenses - The total employee costs for the year were HKD 29,359,000, up from HKD 20,511,000 in 2023, reflecting a rise of 43%[14] - Administrative expenses rose to approximately HKD 45,980,000, a 50.9% increase from HKD 30,476,000 in 2023, mainly due to staff expansion and increased professional fees related to corporate transactions[41] - Financial expenses increased to approximately HKD 21,729,000, a 54.7% rise from HKD 14,044,000 in 2023, attributed to interest expenses from bank financing for uranium procurement[41] Dividends and Shareholder Returns - The company reported no dividends declared for the year ended December 31, 2024, consistent with 2023[20] - The company did not recommend a final dividend for the year, consistent with the previous year[28] Foreign Exchange and Risk Management - The company recorded a loss of approximately HKD 4,742,000 from foreign exchange, primarily due to the sale of a subsidiary not denominated in functional currency[40] - The company does not have a foreign currency hedging policy but will monitor foreign exchange risks and consider hedging when necessary[55] Strategic Agreements - The company has entered a framework agreement with China Uranium Corporation to act as their exclusive supplier of natural uranium products sourced from outside Asia and Africa, and as their agent for market procurement[43] - The anticipated transactions under the 2024 framework agreement are expected to enhance the company's uranium trading business and expand its market coverage in China and globally, thereby strengthening long-term profitability[44]