Core Viewpoint - China General Nuclear Power Corporation Mining (CGN Mining) issued a profit warning, expecting a loss of approximately HKD 40 million to HKD 90 million for the six months ending June 30, 2025, compared to a profit of approximately HKD 113 million in the same period of 2024 [1] Group 1: Financial Performance - The company anticipates a significant decline in profitability due to fluctuations in international uranium trade contract prices and the accounting method for inventory using the weighted average cost method [1] - The unit sales cost for natural uranium in the first half of 2025 is projected to be between USD 68 and USD 74 per pound of U3O8, while the unit sales price for delivered contracts is expected to be between USD 58 and USD 61 per pound of U3O8 [1] - The weighted average cost of inventory for CGN International Uranium Products Sales Company exceeds the sales contract price for the current period, leading to a decrease in gross profit from uranium trading compared to the same period in 2024 [1] Group 2: Market Impact - Following the profit warning, CGN Mining's stock price fell over 3%, with a current decline of 2.53%, trading at HKD 2.3 and a transaction volume of HKD 177 million [1] - The decline in profit is also attributed to decreased earnings from an associated company and a joint venture compared to the same period in 2024 [1]

Core Viewpoint - China General Nuclear Power Corporation (CGN) Mining (01164) anticipates a loss of approximately HKD 40 million to HKD 90 million for the six months ending June 30, 2025, compared to a profit of about HKD 113 million in the same period of 2024 [1] Financial Performance - The expected loss is attributed to significant price fluctuations in the international trade contracts for natural uranium, alongside the weighted average cost accounting method for inventory [1] - The unit sales cost for natural uranium in the first half of 2025 is projected to be USD 68-74 per pound U3O8, while the unit sales price for delivered contracts is expected to be USD 58-61 per pound U3O8 [1] - The weighted average cost of inventory for CGN's international uranium sales company exceeds the selling price of contracts executed during the same period, leading to a decline in gross profit from uranium trading compared to 2024 [1] Operational Stability - Despite the fluctuations in profit, the company's mining production remains stable, and it employs a robust two-sided locking model for international trade, ensuring overall operational stability [1]