CGN Mining Company Limited 2025 Annual Report: Key Takeaways for Investors Financial Performance: Significant Turnaround and Dividend Growth Net Profit Surges: The Group reported a sharp increase in net profit for 2025, reaching HK\$453 million, up 32% from HK\$342 million in 2024. This result was achieved despite a 20% decline in annual revenue, which dropped to HK\$6,870 million (2024: HK\$8,624 million), primarily due to global spot uranium price fluctuations and lower trading volumes. Profitability Improvement: Gross profit margin improved to 1.00% (2024: -0.77%). Net profit margin increased to 6.59% (2024: 3.97%). EBITDA climbed to HK\$759 million (2024: HK\$753 million), with the EBITDA/revenue ratio at 11.05% (2024: 8.73%). Dividend Increase: The Board proposes a final cash dividend of HK1.4 cents per share for 2025, doubling from the HK0.7 cent in 2024, subject to shareholder approval at the upcoming AGM. The dividend is expected to be distributed on or before July 30, 2026, to shareholders on record as of June 30, 2026. Capital Structure and Gearing: Market capitalization rose to HK\$23.5 billion (2024: HK\$12.4 billion). The gearing ratio improved to 45.97% (2024: 44.93%), reflecting prudent capital management and the successful completion of an HK\$800 million equity placement during the year. Strategic & Operational Highlights: Building a High-Quality Growth Platform Key Strategic Initiatives: Continued focus on expanding high-potential uranium resource projects worldwide, leveraging the global acceleration in the nuclear power industry. Systematic planning of existing projects and ensuring the Zhalpak Deposit project advances as scheduled. Active exploration of new trading opportunities while strictly controlling operational risk. Implementation of a medium- and long-term equity incentive plan to align management and shareholder interests and drive long-term growth. ESG and Investor Relations: Establishment of an ESG Committee and publication of annual ESG reports, resulting in an improved ESG rating. Innovative investor engagement through reverse roadshows (“Into the Mine”) and participation in over 100 brokerage strategy meetings and direct communications with more than 400 institutional investors. Inclusion in the Hang Seng Composite Index, Shanghai Stock Connect, and Shenzhen Stock Connect, boosting visibility and liquidity. Industry Recognition: Multiple awards, including “Golden Bull Award for Hong Kong Stocks” (China Securities Journal), “2025 Outstanding Leader of Listed Companies” (National Business Daily), and “ESG Excellent Investment Value Listed Company” (Hong Kong Commercial Daily). Risk Management and Corporate Governance: Robust Systems in Place Comprehensive Risk Management: Effective risk identification, assessment, and mitigation mechanisms, with regular updates and Board-level oversight. No major risk events reported in 2025; all material risks are closely monitored with dynamic response plans. Internal Controls and Compliance: Annual review affirms effectiveness of internal controls and compliance with all major laws, rules, and regulations. Audit Committee and Board alignment on all auditor-related decisions; BDO Limited reappointed as the external auditor. Liquidity and Financial Position: Ample Resources for Growth Sufficient Liquidity: The Group maintained sufficient cash and financial resources for operations, with HK\$944 million in bank balances and cash at year-end. Prudent Financing: Bank borrowings: US\$155 million (4.23%–4.72% floating rates, unsecured). Intercompany loans: US\$231 million (4.47%–4.90% floating, unsecured); RMB 45 million (1.43% fixed, unsecured). No seasonal borrowing needs; future acquisitions may be funded via diverse channels as needed. Key Risks and Forward-Looking Statements Market and Credit Risk: The Group is exposed to natural uranium price volatility and currency risk due to international operations. Credit risk is deemed low due to strong counterparty controls. Tax Losses: The Group has unrecognized tax losses of HK\$432 million, which could be utilized if future profits materialize. No Material Post-Reporting Events: No significant events after the reporting period that would impact the Group’s financials or share price. Shareholder and Corporate Information Public Float: More than 25% of shares are held by the public, meeting Hong Kong Listing Rules requirements. No Share Buybacks or Options: No purchase, sale, or redemption of shares; no outstanding share option schemes or convertible securities. Dividend Policy: The Board aims to balance profit distribution with the need to retain sufficient reserves for future growth.
