Core Viewpoints - The company's international trade business gross profit has declined, and the price of natural uranium has fallen, leading to a loss in the first half of the year [1] - The company's self-produced trading segment, including Xie and Ao companies, has maintained normal production operations, and the income tax has returned to normal levels for the first half of 2025 [1][2] - A new sales framework agreement has been approved by the shareholders' special meeting, with a significant increase in the base price and an adjustment of the spot index ratio from 60% to 70%, indicating potential performance elasticity for the company [1][3] - The price of natural uranium is expected to rise rather than fall, with a continued optimistic outlook for the third round of the uranium bull market [1][4] Event Summary - The company released its mid-term report for 2025, reporting a revenue of HKD 1.709 billion, a year-on-year decrease of 58%, and a loss of HKD 68 million, a year-on-year decline of 160% [1] Production and Operations - The company's overall production operations, especially in the mining sector, remain stable. Both Xie and Ao companies achieved normal production operations in the first half of the year [2] - Xie Company exceeded its uranium extraction plan, with an actual extraction of 428 tons against a plan of 407 tons, achieving a completion rate of 105% [2] - Ao Company also exceeded its uranium extraction plan, with an actual extraction of 923 tons against a plan of 818 tons, achieving a completion rate of 113% [2] - The average production costs for Xie and Ao companies were USD 32.49 and USD 25.21 per pound of U3O8, respectively [2] Sales and Contracts - The company signed new contracts for 1,910 tons of natural uranium, with 53% of sales volume coming from Europe, 30% from Asia, and 17% from North America [2] - The total delivery of natural uranium was 812 tons, generating sales revenue of USD 123 million [2] - As of June 30, 2025, the company held 1,569 tons of natural uranium with a weighted average cost of USD 68.77 per pound of U3O8 [2] Tax and Financial Outlook - The company's income tax expense for the first half of the year was HKD 36 million, a year-on-year decrease of approximately 83% [2] - The new sales framework agreement for 2026-2028 has been approved, with base prices significantly increased compared to the previous agreement, indicating a positive outlook for future uranium prices [3] Market Outlook - The global recovery of nuclear energy, driven by carbon neutrality goals and energy security, is expected to increase uranium demand [3] - The long-term low uranium prices and limited new supply due to reduced capital expenditure in mining are likely to support a bullish market for uranium [4]

Group 1 - The energy transition is driving a demand inflection point, with limited new uranium supply due to low capital expenditure over the past decade, leading to a tight balance in natural uranium supply and demand [1] - Nuclear power plays a crucial role in energy transition and carbon neutrality, providing stable clean energy and supporting the recovery of the nuclear industry, with a new wave of nuclear power construction expected globally [1] - Countries like China, the US, France, and Japan are advancing nuclear power projects, which will likely increase uranium demand, while the long-term low uranium prices and limited new mining supply create a favorable environment for price increases [2] Group 2 - China General Nuclear Power Corporation (CGN) reported a production of 659.1 tons of natural uranium in Q1 2025, with a completion rate of 110.7%, and holds 1,262 tons of natural uranium with an average cost of $71.37 per pound [3] - CGN's international sales company expects a significant negative impact on gross profit due to fluctuations in market prices, with average sales costs between $68-$74 per pound and average sales prices between $58-$61 per pound for the first half of 2025 [3] - China Nuclear International, the overseas uranium resource platform of China National Nuclear Corporation, reported a significant increase in uranium trade, with sales of approximately 577,000 pounds and total revenue of HKD 1.841 billion, a year-on-year increase of 217% [3]