CNNC INT'L (CNNC International Limited) reported first-half 2026 revenue of HK$142.12 million, a 76.0% year-on-year contraction driven by a steep drop in spot uranium trading with independent third parties. Gross profit fell 58.1% to HK$8.24 million; however, gross margin improved to 5.8% from 3.3% on a more conservative trading mix focused on connected transactions that insulated the group from volatile uranium prices.
Net profit decreased 49.1% to HK$5.28 million, trimming the net margin to 3.7% (H1 2025: 1.7%) as lower trading income was partly offset by higher bank interest income of HK$13.37 million (up 125.8%) and a HK$5.28 million exchange gain. Basic and diluted EPS declined to HK1.08 cents from HK2.12 cents. The board did not declare an interim dividend.
Cash and cash equivalents stood at HK$732.59 million at 30 June 2026, down from HK$907.05 million at year-end 2025, reflecting a net operating cash outflow of HK$186.95 million. Trade receivables rose to HK$201.30 million following end-period deliveries, while trade and other payables fell to HK$93.91 million. The group remains debt-light with a gearing ratio of 0.11.
CNNC INT'L sold 0.76 million pounds of natural uranium in the period versus 2.43 million pounds a year earlier. Sales comprised 0.20 million pounds to third parties and small volumes to parent China National Nuclear Corporation (CNNC) under continuing connected transactions. The group also arranged trades totalling 0.56 million pounds for Rössing Uranium Mine, generating commission income of HK$7.46 million.
Management attributed the volume decline to extreme price volatility—spot uranium briefly exceeded US$101 per pound in Q1 amid geopolitical tensions and speculative fund buying—prompting a cautious trading stance. With prices stabilising around US$83-87 per pound in Q2, the group expects to execute at least 4.00 million pounds of additional transactions in H2 2026 and maintains a full-year sales target of roughly 5.00 million pounds.
Strategically, CNNC INT'L is leveraging a 2026 Framework Agreement with China National Uranium Co. (CNUC) to act as exclusive supplier, agent and distributor for specified uranium transactions. The company also continues to pursue resolution of mining rights issues in Mongolia and to formulate a restart plan for its Niger associate Somina.
Post-period, on 6 August 2026, non-executive director Wu Ge was re-designated as executive director and stepped down from the audit committee. The group’s HK$50 million committed facility with CNNC Treasury Management remains undrawn, as does a US$30 million banking facility obtained in June for uranium purchases.
No material acquisitions or disposals occurred during the half. The company affirms compliance with Hong Kong’s Corporate Governance Code and reports no contingent liabilities.
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