CNNC International reported interim results for the six months ended 30 June 2026 that highlighted a sharp fall in trading volumes but a resilient bottom line, underpinned by improved margins, rising bank interest income and foreign-exchange gains.
Revenue and Profitability • Revenue declined 75.99% year on year to HK$142.12 million as the Group sharply curtailed spot uranium trades amid extreme price volatility and geopolitical tensions in the Middle East. • Gross profit fell 58.11% to HK$8.24 million; however, gross margin widened to 5.8% from 3.3% a year earlier, reflecting a shift toward lower-risk, commission-based transactions under existing connected-party agreements. • Net profit attributable to shareholders slipped 49.08% to HK$5.28 million. Net margin nonetheless improved to 3.7% (1H25: 1.7%) thanks to: – Bank interest income more than doubling to HK$13.37 million. – Net exchange gains rising to HK$5.28 million (1H25: HK$1.34 million). • Earnings per share came in at HK1.08 cents (1H25: HK2.12 cents). No interim dividend was declared.
Cost and Expense Dynamics • Selling and distribution expenses fell 41.9% to HK$1.14 million, mirroring lower physical uranium handling costs. • Administrative expenses increased 20.6% to HK$19.16 million, reflecting head-count expansion and higher professional fees, including ESG-related consultancy. • Finance costs halved to HK$0.06 million, linked solely to lease-liability accounting.
Operational Highlights • Total uranium sales reached 0.76 million pounds, with approximately 0.20 million pounds transacted with independent third parties; the remainder related to connected-party arrangements with China National Nuclear Corporation (CNNC) and Rössing Uranium Mine. • Commission income from the Uranium Purchase and Uranium Agency transactions contributed HK$7.46 million (1H25: HK$10.26 million). • Management expects to transact no less than 4 million pounds of uranium in 2H26, targeting a full-year volume of at least 5 million pounds as market volatility eases.
Balance Sheet and Liquidity • Cash and cash equivalents stood at HK$732.59 million at 30 June 2026 (31 Dec 2025: HK$907.05 million), following a net operating cash outflow of HK$175.01 million attributable to trading settlements. • Net current assets edged up to HK$871.03 million, while the gearing ratio (total debts/total assets) improved to 0.11 from 0.13 at year-end 2025. • No bank borrowings were reported; banking facilities remain secured by certain subsidiary bank accounts.
Strategic Outlook The Group will concentrate on expanding its uranium trading platform under the 2026 Framework Agreement with the CNUC Group, aiming to act as the procurement arm and exclusive distributor for select uranium products. Management continues to pursue resolution of mining-rights issues in Mongolia and to explore a restart plan for the Somina project in Niger, while monitoring global uranium supply-demand dynamics for further investment opportunities.
Corporate Actions • No interim dividend proposed. • No purchase, sale or redemption of listed securities during the period. • Post-period, Director Wu Ge was re-designated from non-executive to executive status effective 6 August 2026.
CNNC International affirmed adherence to Hong Kong’s Corporate Governance Code and reported full compliance with the Model Code for securities dealings by directors.
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