China National Nuclear International (02302) announced that compared with the revenue of HKD 76.14 million expected in the six months ending June 30, 2023, the group's revenue in the first half of 2024 will decrease by no less than about HKD 69 million (or no less than about 90%); compared with the gross profit of approximately HKD 0.67 million in the first half of 2023, the gross profit will increase by no less than about HKD 5 million (or no less than about eight times); and the net profit attributable to shareholders in the first half of 2023 of approximately HKD 8.33 million will be turned into a net loss attributable to shareholders of no less than about HKD 8 million in the first half of 2024.

Due to a significant decrease in the trading volume of the group's uranium trading business, the expected revenue of the group in the first half of 2024 is severely affected. As the spot uranium price experienced a rapid and violent surge and fluctuation within the period, directors believe that, under the international spot uranium trading environment with increased price volatility and uncertainty, the relevant transaction risks of conducting spot uranium trading will impose major burdens on the group in the short term. In order to prudently manage risks, the group will focus on the execution of related transactions under the uranium purchase transactions with Rossing Uranium Mine (as defined and more details set out in the Continuous Connected Transactions Announcement of the company dated 23 February 2022), which do not involve the assumption of pricing risks by the group, thereby increasing the gross profit of the group for the first half of 2024. As the spot uranium price has slightly stabilized, the group is expected to recover and regain its uranium trading business in the second half of 2024.

The net profit attributable to shareholders in the first half of 2023 is expected to turn into a net loss attributable to shareholders in the first half of 2024, mainly due to the expansion of manpower resulting in an increase in employee costs by no less than about HKD 3 million compared with the first half of 2023. Professional fees have also increased by no less than about HKD 2 million compared with the first half of 2023, mainly due to continuous related transaction activities conducted in the first half of 2024. In addition, financing costs have increased by no less than about HKD 6 million compared with the first half of 2023, due to additional bank financing withdrawals. The performance of an associate company is expected to decline by no less than about HKD 6 million compared with the first half of 2023, and the income tax expense is expected to increase by no less than about HKD 1 million compared with the first half of 2023.