Changes in Hong Kong stocks | CGN Mining (01164) fell nearly 4%. One-off factors dragged down net profit institutions returning to their mother last year, saying it faced challenges in the short to medium term

The Zhitong Finance App learned that CGN Mining (01164) fell nearly 4%. As of press release, it was down 3.77% to HK$1.53, with a turnover of HK$49.2212 million.

According to the news, CGN Mining recently announced its 2024 results. The continuous business turnover was approximately HK$8.624 billion, up 17.18% year on year; company owners should account for about HK$342 million in profit for the year, a decrease of 31.2% year on year. Mainly due to traceability of withholding tax accruals on dividends and losses from Fission's termination of operations. According to Sino-Thai International, if the above two factors are excluded, real profit increased by about 29% year over year to HK$640 million. In fact, the profit of joint ventures and joint ventures reflecting the uranium mining business rose sharply by 71.5% year-on-year to HK$1.02 billion, mainly due to rising sales prices.

Zhongtai International pointed out that in the short to medium term, the CGN mining industry faces two main challenges: (1) From 2023 to 2025, the company will sell all self-produced uranium ore products to the parent company CGN Group based on the share of project equity, and set the price according to the following mechanism: sales price = (40% * base price) + (60% * spot index). The pricing mechanism after 2025 has yet to be announced, which will have a significant impact on the future profits of the company's uranium mining business; (2) In 2024, global uranium ore supply will increase by about 7% (about 4,000 Tu) year on year to 59,000 Tu to ease supply pressure. Supply is also expected to continue to increase over the next two to three years.