China Mining International Limited: FY2025 Financial Review & Investor Analysis

China Mining International Limited has released its unaudited condensed financial statements for the twelve months ended 31 December 2025. This review analyzes key financial metrics, performance trends, exceptional items, and significant corporate actions, offering investors a clear and comprehensive perspective on the company’s situation and future outlook.

Key Financial Metrics and Performance Comparison

Historical Performance Trends

• The company recorded its first revenue in several periods with RMB 51,000 in Q4 2025, attributed to the launch of an agricultural product trading business. Prior to this, there had been no revenue reported since at least the beginning of 2024.
• Net loss shrank dramatically from RMB 78.2 million in FY2024 to RMB 7.1 million in FY2025, primarily due to significant cost reduction, the absence of large one-off impairments, and the launch of a new revenue segment.
• Operating cash outflows improved, with net cash used in operations at RMB 2.5 million in FY2025 compared to RMB 3.5 million in FY2024, reflecting effective cost management.
• Net asset value per share fell from 1.88 RMB cents at end-2024 to 0.58 RMB cents by end-2025 as the company remains in a net liability position.

Exceptional Items and One-offs

• FY2024 saw massive one-off impairments, especially on bearer plants, property, plant, and equipment, and trade receivables. These were not repeated at the same scale in FY2025, supporting the YoY improvement in net loss.
• In FY2025, a director repaid RMB 1.5 million of company debt and subsequently waived repayment, providing non-recurring financial relief.
• Other income in FY2025 was mainly from compensation (RMB 450,000) and asset disposal gains (RMB 498,000), not from core operations.

Asset Valuation and Audit Issues

• The company’s 40.15% stake in Huixin Mining International Pty Limited remains carried at RMB 28.9 million. No revaluation was conducted in FY2025. The company is in talks to realize value from this investment, possibly via sale or partnership.
• Outstanding audit issues from the previous year (including asset impairment, receivables, bank balances, and going concern) are being addressed. The company has worked with courts, creditors, and valuers to resolve these, aiming for resolution in the next audited cycle.

Legal, Restructuring, and Related-party Events

• The company faces ongoing negotiations and litigation regarding several legacy loans, with court proceedings and asset seizures in play. Some loans have been restructured, and repayments were made via asset transfers and director support.
• China Mining received interest-free, unsecured financial support from both its controlling shareholder and a director, with commitments for further support if needed.
• A voluntary deregistration application was submitted for a Hong Kong subsidiary to cut costs in 2026.

Dividends

• No dividends were declared or paid in FY2025 or FY2024 due to the group’s ongoing losses and net liabilities position.

Chairman’s Statement

“Amid the deteriorating economic environment and financial conditions, the Group faced 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. In the fourth quarter of 2025, the Group started new trading business in agricultural product and generated revenue of RMB 51,000. This new revenue stream was expanded in January 2026. Besides this, the Group is also seeking more potential partnerships and analysing the feasibility of collaborations for diversified income. To extract value from the Thabazimbi Mine, the Group is in several conversations with potential buyers or strategic partners with the aim of generating substantial cash inflow from the transaction. To overcome the loan repayment challenges, the Group is in active engagement with related creditors to come up with better repayment arrangement plans. A director repaid a debt on behalf of the Group in Q42025 and signed an agreement on 9 February 2026 to waive the repayment obligation. The director will consider providing future financial support should the Group needs. The Group is committed to its goal of cost reduction 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. In 12m2025, the Group submitted a voluntary deregistration application for its Hong Kong subsidiary and expect it to be closed in the first half of 2026, reducing future operational cost.”

The tone of the statement is realistic and cautious, acknowledging persistent challenges but also emphasizing ongoing restructuring, cost-cutting, and the search for new revenue streams and asset monetization.

Outlook and Investor Recommendations

Overall Assessment

The company’s financial position remains fragile. Although losses and cash outflows have narrowed substantially YoY due to sharp cost reduction and the absence of major one-offs, the group is still in a net liability position, with minimal revenue from new activities and persistent legacy loan and legal issues. The company’s survival continues to rely on related-party financial support and the successful monetization of non-core assets.

Recommendations

• If you currently hold the stock: Exercise caution. While the sharp reduction in losses and active cost control are positive, the group’s financial stability still depends on external support and future asset sales. Consider maintaining only a small speculative position until there is clear evidence of recurring revenue growth or successful resolution of legal/debt issues.
• If you do not hold the stock: It is prudent to stay on the sidelines for now. The company’s operational turnaround is at a very early stage, and material risks remain. Only consider entry if there is a sustained increase in operating revenue or a successful, value-enhancing asset monetization event.

Disclaimer: This analysis is based exclusively on the company’s disclosed financial statements and does not constitute investment advice. All investments carry risk, and past performance is not indicative of future results. Investors should do their own due diligence or consult a professional advisor before making any investment decisions.

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