Weak Statutory Earnings May Not Tell The Whole Story For CGN Mining (HKG:1164)

Simply Wall St.05-06

A lackluster earnings announcement from CGN Mining Company Limited (HKG:1164) last week didn't sink the stock price. We think that investors are worried about some weaknesses underlying the earnings....

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We think that investors are worried about some weaknesses underlying the earnings....</p>\n\n<a href=\"https://simplywall.st/stocks/hk/energy/hkg-1164/cgn-mining-shares/news/weak-statutory-earnings-may-not-tell-the-whole-story-for-cgn\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Weak Statutory Earnings May Not Tell The Whole Story For CGN Mining (HKG:1164)</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWeak Statutory Earnings May Not Tell The Whole Story For CGN Mining (HKG:1164)\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-05-06 07:09 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/energy/hkg-1164/cgn-mining-shares/news/weak-statutory-earnings-may-not-tell-the-whole-story-for-cgn><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>A lackluster earnings announcement from CGN Mining Company Limited (HKG:1164) last week didn't sink the stock price.  We think that investors are worried about some weaknesses underlying the earnings....</p>\n\n<a href=\"https://simplywall.st/stocks/hk/energy/hkg-1164/cgn-mining-shares/news/weak-statutory-earnings-may-not-tell-the-whole-story-for-cgn\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"01164","symbol_name":"中广核矿业","start_time":0,"source_url":"https://simplywall.st/stocks/hk/energy/hkg-1164/cgn-mining-shares/news/weak-statutory-earnings-may-not-tell-the-whole-story-for-cgn","article_id":"2633972572","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/2052001-choice2-main-header/1585186680440"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/hk/energy/hkg-1164/cgn-mining-shares/news/weak-statutory-earnings-may-not-tell-the-whole-story-for-cgn","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2633972572","pubTimestamp":1778022546,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"A lackluster earnings announcement from CGN Mining Company Limited ( HKG:1164 ) last week didn't sink the stock price...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"01164":"中广核矿业"},"translate_title":"疲弱的法定盈利可能并不能说明中广核矿业（HKG：1164）的全部情况","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"01164":1.5},"content_text":"A lackluster earnings announcement from CGN Mining Company Limited (HKG:1164) last week didn't sink the stock price.  We think that investors are worried about some weaknesses underlying the earnings.    This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.SEHK:1164 Earnings and Revenue History May 5th 2026 Advertisement Examining Cashflow Against CGN Mining's Earnings  One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period.  You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'.  As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative.  While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow.  That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth.  For the year to December 2025, CGN Mining had an accrual ratio of 0.23.   Unfortunately, that means its free cash flow fell significantly short of its reported profits.    Over the last year it actually had negative free cash flow of HK$985m, in contrast to the aforementioned profit of HK$452.8m.    Coming off the back of negative free cash flow last year, we imagine some shareholders might wonder if its cash burn of HK$985m, this year, indicates high risk.   That might leave you wondering what analysts are forecasting in terms of future profitability.  Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.   Our Take On CGN Mining's Profit Performance CGN Mining didn't convert much of its profit to free cash flow in the last year, which some investors may consider rather suboptimal.      Therefore, it seems possible to us that CGN Mining's true underlying earnings power is actually less than its statutory profit.    Sadly, its EPS was down over the last twelve months.     Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors.     So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing.    At Simply Wall St, we found 2 warning signs for CGN Mining and we think they deserve your attention.   Today we've zoomed in on a single data point to better understand the nature of CGN Mining's profit.   But there are plenty of other ways to inform your opinion of a company.  For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying.  While it might take a little research on your behalf, you may find this free  collection of companies boasting high return on equity, or  this list of stocks with significant insider holdings to be useful.  New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.42.2","shortVersion":"4.42.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2633972572","isCrawlerRequest":true}