China Mining International Limited Q3 2025 Financial Analysis

China Mining International Limited has released its unaudited condensed financial statements for the nine-month period ended 30 September 2025. The report provides valuable insights into the company’s financial health, performance trends, and ongoing challenges. This analysis summarizes key metrics, performance comparisons, and significant developments for investors.

Key Financial Metrics and Performance Comparison

Historical Performance Trends

• The company reported no revenue or gross profit for the nine-month periods ending September 2024 and 2025. The agricultural business was discontinued, and no new revenue streams have been activated yet.
• Net losses have narrowed, with a reduction of 26% year-over-year, primarily due to reduced operating expenses and lower finance costs.
• Net asset value per share has continued to decline as losses accumulate and asset impairments are recognized.

Exceptional Earnings and Expenses

• Significant one-off impairment losses were recorded: RMB 1.21 million on trade receivables and RMB 1.23 million on property, plant, and equipment in Q3 2025.
• Other income decreased sharply due to lower government compensation, with only lease income of RMB 250,000 recognized from the usage rights of agricultural assets.
• Finance expense dropped by 68% year-over-year as a result of reduced borrowing interest and lease terminations.

Asset Revaluation and Audit Issues

• The valuation of the company’s key asset, a 40.15% stake in Huixin Mining International Pty Limited (holder of mining rights in South Africa), remains unchanged. Management opted not to conduct a new independent valuation, relying on the last sales and purchase agreement as the best estimate.
• Auditors previously issued a disclaimer of opinion due to inability to access seized assets for valuation, uncertainty about completeness of bank balances, and lack of independent mine valuation. The company has taken steps to address asset seizure and court proceedings, but full resolution is pending.
• Impairments have been prudently recognized where assets are sealed or leases have expired.

Legal and Macroeconomic Issues

• Ongoing court cases related to loans and asset seizures (notably with Zhongyuan Bank Zhengzhou Branch and Henan Zhongnong Huasheng Agricultural Science and Technology Co.) have affected asset status and financial reporting.
• Some assets remain under seizure, limiting operational flexibility and causing additional impairment.
• The company is actively negotiating with creditors for debt restructuring, including extending repayment terms and seeking better arrangements.
• The macroeconomic environment remains challenging, with regulatory and financial barriers to launching new business activities.

Fundraising and Corporate Actions

• China Mining is seeking RMB 10 million in equity financing via private placement to fund business development over the next two years.
• There were no share buybacks, new options, or dilution events in the reporting period.
• The controlling shareholder, Mr. Guo Yinghui, continues to provide financial support and has agreed not to recall related party loans for at least 18 months, and to provide additional working capital if required.

Related Party Transactions and Fund Flows

• There were no interested person transactions above S\$100,000 or under shareholder mandate in the period.
• Unusual fund flows included an advance of RMB 1.1 million from a director for operating expenses.

Divestments, Asset Sales, and Outlook

• The company is actively exploring options to realize value from its mining investment, including seeking new buyers or strategic partners for the Thabazimbi Mine.
• No dividend was declared for the current or previous period, reflecting the loss-making position and focus on cost reduction and liquidity.

Chairman’s Statement

“Amid the deteriorating economic environment and financial conditions, the Group faced significant challenges in collaborating with business partners and managing regulatory burdens. Nevertheless, despite the uncertain market landscape, the Group remains resolute in its commitment to cautiously and proactively pursuing new revenue streams within this challenging macroeconomic context. To bolster new revenue streams, the Company is in the process of seeking potential partnerships and analysing the feasibility of collaborations for diversified income. To extract value from the Thabazimbi Mine, the Company is seeking new buyers or strategic partners with the aim of generating substantial cash inflow from the transaction. To overcome the loan repayment challenges, the Company is in active engagement with related creditors to come up with better repayment arrangement plans. The Company is committed to its goal of reducing operational costs and will continue to implement cost-cutting measures including but not limited to disposing dormant holding companies, substituting with low-cost service providers without compromising efficiency.”

Tone: The Chairman’s statement is cautious but proactive, acknowledging severe challenges yet emphasizing ongoing efforts to stabilize the company and seek new opportunities.

Conclusion and Recommendations

Summary of Financial Performance and Outlook

China Mining International Limited remains in a weak financial position. Revenues are absent, net losses continue (though reduced), and asset impairments persist. The company is reliant on shareholder support and external fundraising to maintain operations. Ongoing legal disputes and asset seizures cloud the outlook, while efforts to monetize mining investments and restructure debt are yet to yield results. The lack of dividend and ongoing litigation make the stock highly speculative and risky.

Investor Recommendations

• If you currently hold this stock: Exercise caution. Monitor developments closely, especially regarding asset sales, fundraising, debt restructuring, and legal resolutions. Consider reducing exposure unless there is clear evidence of a turnaround or substantial asset monetization.
• If you do not currently hold this stock: Avoid initiating new positions at this time. The company’s operational and financial risks, combined with the absence of revenue, dividend, or growth prospects, make it unsuitable for conservative or income-oriented investors.

Disclaimer: This analysis is based strictly on the company’s Q3 2025 financial report. Future developments could materially alter the outlook. Investors should conduct their own due diligence and seek professional advice before making any investment decisions.

View China Mining Historical chart here